Zcash (ZEC) Overcomes Nasty Headlines to Gain 7%

Zcash (ZEC) was among the crypto market’s top performers on Thursday, as the privacy-focused coin overcame negative headlines concerning mining pool censorship and a multi-million-dollar lawsuit initiated by a former employee.

ZEC Price Update

For the first time in nearly two weeks, the value of Zcash returned above $90 on Thursday. The privacy coin peaked at $91.22, having gained more than 7%.

At the time of writing, the ZEC/USD exchange rate was hovering just north of $90, according to CoinMarketCap.

Zcash Price
Zcash (ZEC/USD) regains momentum on Thursday, crossing above $90 for the first time since the start of June. | Source: CoinMarketCap.

ZEC also put up firm gains against bitcoin, climbing 5.1% to 0.01106808.

At current values, Zcash has a total market capitalization of 608 million. It ranks 23rd by active cryptocurrency projects.

Zcash is trading well below its yearly peak of $96.59. After struggling through the first five months of the year, the cryptocurrency has gained more than 55% since the start of the second quarter.

Trouble at Zcash?

Zcash made headlines this week after a disgruntled former employee handed the organization summons papers. Zerocoin Electric Company, the organization behind Zcash, is being sued by Simon Liu for $2 million over unpaid shares and a breach of contract, according to official court documents filed in San Francisco May 29.

Liu joined the organization as a software engineer back in 2016 where he was given the right to purchase 12,000 units of company stock. His contract was later amended to award him 15,000 units.

Liu filed the lawsuit one day after resigning from Zercoin, alleging that the company knowingly misled him over the common stock award because it did not have authorization to issue it in 2016.

Meanwhile, at least one analyst is questioning the utility of Zcash after it came to light that one of the protocol’s largest mining pools is censoring private transactions. As Crypto Slate reports, a former software developer at AWS noticed that Zcash’s second-largest mining pool has been censoring private transactions for over two years.

F2Pool, the mining pool in question, controls nearly a fifth of Zcash’s hashrate.

There could be many reasons why F2Pool is choosing not to mine private transactions, including regulatory concerns and the difficulty of actually processing them. But according to Wang Chun, the mining pool’s owner, the real reason is laziness on his part.

Regardless of the reason, the apparent censorship of private transactions is problematic for Zcash and could reignite a long-standing debate over the protocol’s decision to make shielded addresses optional.

For more on this topic, read Investing Idea: Zcash.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi