The increasing interest in privacy-focused altcoins has led to a significant rise in the price of ZEC Coin. However, after reaching its peak, ZEC’s momentum waned, and today it is in the spotlight due to a community vote. Ethereum co-founder Vitalik Buterin’s recent warning has reignited debates about the future of Zcash. What developments are unfolding?
Zcash and Vitalik Buterin
On November 25, Artkor shared a proposal suggesting that there should be no changes to the structure of the Zcash Governance Community (ZCG). The Zcash community remains divided over governance. One faction believes it’s time to move towards on-chain governance, as the current system is outdated.
Vitalik Buterin argues against token-based governance for Zcash, stating that it could undermine core values like privacy. He has made his stance clear by warning that privacy could be particularly at risk if left to the discretion of the “average token holder.” Buterin believes token voting would be a worse option than the current governance structure.
“I hope Zcash resists the downside of token voting. Token voting is bad in every aspect. I think it’s worse than Zcash’s current state. Privacy, if left to the average token holder, can erode over time.”
These discussions are crucial for the future of ZEC Coin, as investors who value privacy might resort to massive protest sales if the protocol moves in the opposite direction. As major investors exit, prices for alternatives like Monero might rise, while ZEC could falter.
ZEC Coin Price and Governance Impact
In the long term, a change in governance structure could weaken privacy capabilities, so it’s unsurprising that current debates are impacting its price negatively. The price, which once approached $750, had fallen close to the levels seen on November 12 at the time of writing. If ZEC Coin loses its hold at $450 and drops below $379, it might mark a complete reversal from its historic rise.
On November 7, ZEC Coin reached a new peak but failed to maintain a position above $700 despite multiple attempts this month. Negative market sentiment has also played a role here, but since we’ve been seeing lower highs and lower lows, a clear reversal from the peak is evident.
The ultimate breakdown is likely to occur with intensified selling pressure should the price fall below $427. For those engaged in short selling, this could either be a trap or an opportunity.