Gemini Co-Founder Launches Privacy-Focused Investment Firm
Gemini co-founder Tyler Winklevoss unveiled Cypherpunk Technologies on Wednesday, a rebrand of Leap Therapeutics. The new venture is backed by a $58.9 million Winklevoss Capital investment and is specifically aimed at acquiring and holding privacy-focused cryptocurrency Zcash. The company has already made a significant initial purchase, acquiring 203,775 Zcash at an average price of roughly $245 per coin, totaling approximately $50 million.
Cypherpunk Technologies' Ambitious Zcash Holdings Goal
Cypherpunk Technologies has outlined an ambitious plan to increase its Zcash holdings to at least 5% of the cryptocurrency's total supply. Similar to Bitcoin, Zcash has a fixed maximum supply of 21 million coins. With approximately 16.3 million ZEC currently in circulation, Cypherpunk's initial purchase already represents about one-fifth of its 5% accumulation target.
Winklevoss on Privacy and Self-Sovereignty
Tyler Winklevoss articulated his vision for privacy on X, stating that "Privacy is the precondition for many of our freedoms." He further elaborated that privacy represents "the point at which government and corporate reach end and our individual freedoms and self-sovereignty begin." The company is set to begin trading on the Nasdaq under the new ticker symbol CYPH on Thursday.
Strategic Pivot for Leap Therapeutics
The rebrand signifies a substantial pivot for the former biotech firm, Leap Therapeutics. The company will continue its cancer-drug research through a wholly owned subsidiary that will retain the Leap Therapeutics name. In conjunction with the funding and name change, the company has appointed Khing Oei as board chair and Will McEvoy as chief investment officer.
Synergy Between Digital Assets and Biotech
Douglas Onsi, CEO of Cypherpunk Technologies, expressed his belief that the company's digital asset holdings will serve as a complement to its biotech business. He also stated that these holdings will create long-term shareholder value through active participation in the Zcash ecosystem. The leadership transition includes Oei, who is also the founder and CEO of Treasury, a Netherlands-based Bitcoin treasury company that successfully raised $147 million in September, assuming the chairman role.
Zcash as "Encrypted Bitcoin"
Winklevoss drew a parallel between Zcash's potential role and that of Bitcoin, referring to Zcash as "encrypted Bitcoin." He suggested that the privacy coin could eventually capture a significant share of Bitcoin's market value. "If Bitcoin is digital gold, Zcash is digital cash," he remarked, emphasizing that the two digital assets are complementary.
Recent Zcash Price Action and Market Performance
Zcash has experienced a notable surge in recent weeks, reaching a peak above $720, its highest point in over seven years, before experiencing a pullback to approximately $460 as of Wednesday. The token's value had increased nearly tenfold within a two-month period, leading to $51 million in short liquidations before its recent moderation. Despite this, Zcash remains 85% below its all-time high of $3,191, which was set in 2016.
Zcash Addresses Privacy and Scalability Concerns
Zcash co-founder and StarkWare CEO Eli Ben-Sasson highlighted Zcash's ability to address two critical issues on public blockchains: privacy and scalability, differentiating it from mix-based solutions. Galaxy Digital research analyst Will Owens observed that Zcash is gaining traction as a viable alternative to Bitcoin, particularly amid increasing concerns about on-chain surveillance. Owens noted that Zcash's proponents frame it as "encrypted Bitcoin," a concept that aligns with cypherpunk principles and resonates with users concerned about widespread on-chain surveillance, contrasting it with Bitcoin's fully transparent transaction history.