Can Zcash (ZEC) Reverse a Long-Term Downtrend?

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Zcash (ZEC) made quite the move on May 14th, adding over $100 to its price tag in a very short amount of time. Short-term catalysts, being added to exchanges (namely Gemini), and all the usual drivers caused the mark up much to traders elation. This euphoria, unfortunately, did not last long as over the past few days ZEC has erased all but 10 USD from its recent rally, taking a knee at 260 USD. Joy turns to despair and selling pressure seems to be back on, being further exasperated by the overall pressure on the crypto market currently.

Zcash (ZEC) has often been portrayed as the "true" privacy coin as it's supporters point out the flaws and past compromises of competitor coins like Monero (XMR) and Verge (XVG). While Zcash has never been hacked a group of researchers from University College London is poking holes in its claims of anonymous transactions.

The argument goes something as follows, Zcash (ZEC) transactions have two different types of addresses that are used in transactions. The "t-address" is unshielded and public, much like the traditional Bitcoin (BTC) or Ethereum (ETH) address, all information is available to be viewed on the blockchain.The second type, the "z-address" is shielded, thus, still viewable on the blockchain but information beyond transaction times and fees is hidden from the public.

The issue experts point to is not so much in the addresses themselves but the way they are used. As transactions are processed they must move through a shielded address, so as it moves from unshielded to shielded and back again ZEC sheds anonymity. In this way, ZEC's core feature could become compromised. The simple solution is to store coins in shielded addresses only but that is not a catch-all to the problem.

By no means is this a complete explanation, but you get the gist... I hope. If you desire great detail, prepare to get it in spades, here is the research paper in full.

ZCash (ZEC) Reaction

Much to their credit, Zcash (ZEC) has embraced the critiques of researchers and invited them to join them in solving the issues saying, "(we) invite other scientists to join with us in investigating these questions that are important to the future of human society." Pretty intense if not a tad over-dramatic. Theatrics aside this does fall in line with ZEC's philosophy as it's been presented before. There has always been a lot of transparency on security concerns with the coin and how they could be addressed. Zec even compiled a list of warnings themselves.

The Zcash (ZEC) team show no lack of confidence and acknowledge that ZEC is essentially an alpha product, or work in progress, they have to improve upon. Given their track record, it is fairly safe to say the underlying security issues will be fixed, sooner or later, as they continue to improve the coin protocol.

Zcash seems to be finding buyers at the 250 level so another mark up could be possible in the near future. That remains to be seen as mounting pressure and a shift in market narrative points to a drop for Bitcoin (BTC) to its next support level, if this occurs Zcash (ZEC) may follow suit. For the moment, it may be best to avoid trading this coin, however, it should be observed closely for further signs of breaking it's long-term downtrend and reversing to the upside.

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I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

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