Zcash Value Plummets as Winklevoss-Backed Firm Halts Purchases

Zcash (ZEC) has plummeted 68% from its peak in November to around $235, causing concerns among investors. The token's value dropped by roughly 38% in the past month alone, with its four-month low reaching below $220 on Feb. 5.

Cypherpunk Technologies, a Winklevoss-backed firm that adopted a Zcash treasury strategy, has halted its purchases since Dec. 30. Its position of 290,062 ZEC, worth around $1.76% of circulating supply at an average cost of $334 per token, is now roughly $26 million underwater.

Despite this downturn, Digital Currency Group founder Barry Silbert remains optimistic about the privacy coin sector. He predicts that 5-10% of Bitcoin's market capitalization will rotate into privacy coins like Zcash over the coming years, which would imply $65-130 billion in new capital.