‘Friendly Fork’ Ycash (YEC) Arrives While Zcash (ZEC) Traders Sell the News
The Zcash (ZEC) blockchain spawned a new cryptocurrency on Friday, after the Ycash (YEC) hardfork was successfully implemented. Dubbed a ‘friendly fork’, the creation of Ycash largely concerns removing the current Zcash founders reward.
Meanwhile the value of Zcash continued to tumble, following 47% losses between June and July.
Ycash Cuts Out Middle Man
As it stands, Zcash founder Zooko Wilcox-O’Hearn gains 20% of the mining rewards every month, equating to over 2,000 ZEC ($150,000 at current prices). On the now live Ycash network that reward is cut down to 5%, and then filtered into the non-profit Ycash Foundation.
Announced in April, the Ycash founders state they believe the founder’s reward would ultimately be a hindrance to the widespread adoption of Zcash.
“We believe that both mining on commodity hardware and maintaining the promised cap on the Founders Reward are essential to a fair distribution of coins. In turn, we believe that a fair distribution of coins is essential to ultimately achieving widespread adoption.”
The ‘key changes’ at launch were few and far between, but are made significant due to the principles behind them.
The Ycash Foundation announced the successful mining of the first block on Friday. Anyone holding ZEC as of 7:36:51 PM PDT Friday will now have access to the same amount of YEC.
As the news broke on Friday, Zcash was one of the worst losers among the top 30 major cryptocurrencies. The Ycash fork, however friendly it might be, could be the reason why.
Accumulate Then Dump: Zcash Soars Then Tumbles
As speculated in a CCN article from June, the Ycash hardfork was always going to attract Zcash buyers purely for the sake of gaining free coins. Indeed, this may have helped Zcash to its 122% gains between May and June alone.
But between June and July, the coin’s losses amounted to just over 47%. By the time the Ycash hardfork arrived, Zcash was already being sold off again. On Friday, it was the worst performing coin among the market cap top 30, losing 9.3% on the day. That carried the coin price down from $80.03 to $72.51.
As is often the case, those who move the markets are naturally several steps ahead of the rest of us. Any anticipation surrounding Zcash’s hardfork was already baked into the price back in June. That’s something to keep in mind for those expecting Litecoin to double when its block reward halves as scheduled in the next couple of weeks. Especially since Litecoin already surged 380% since January before the recent pullback.
In the past 24 hours the Electric Coin Company, which oversees Zcash, announced the completion of three separate audits, each targeting various aspects of the ZEC network. Meanwhile, a weekly engineering report details ongoing work at Zcash HQ, and the Electric Coin Co have also embarked on a new recruitment drive.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via CoinMarketCap.