Arthur Hayes Urges Zcash Holders to Exit CEXs and ‘Shield’ Their Funds
Arthur Hayes’ comes at a particularly challenging time for Zcash, which has experienced a significant 37% decline in value. ZEC prices fell from a high of $723 last Saturday to around $450 later than many warned that the market was too hot. Hayes underlined that by leaving assets on CEXs, users jeopardize the entire premise of Zcash’s privacy architecture.
The Privacy Imperative: Shielded vs. Transparent Addresses
Hayes’ main point is on the technical details of Zcash’s . Zcash differs from other cryptocurrencies in that it has two types of addresses: transparent (t-addresses), which are public like BTC, and shielded (z-addresses).
These addresses utilize zero-knowledge proofs (zk-SNARKs) to conceal transaction data. Most platforms only accept transparent addresses, which means that all on-chain activities may be tracked, and Zcash’s promise of user privacy is broken.
The Dangers of Centralized Custody and Being Open to Regulation
Hayes’ call to protect ZEC is similar to long-standing cypherpunk criticisms: when assets are housed on platforms, users are at risk of having their funds frozen, being required to follow strict rules, and having their assets delisted.
This has happened before with privacy-focused coins like Monero, which makes many more worried that may end up the identical way. The idea is that users can only achieve absolute financial freedom if they manage their own keys and utilize the privacy features as intended.
Zcash’s Market Outlook in Light of Privacy Issues
Even if the price has decreased, Zcash still boasts a strong market capitalization of $7.4 billion and has gained 5% in value over the previous week. This indicates that there remains strong demand for privacy-focused assets. Another top privacy coin, , has also shown market strength, with a 7% weekly rise.
This indicates that people still viewk tools that provide them with more control and secureguard their transactions. ‘ warning is a crucial call to action for the crypto community that values privacy.
As regulators scrutinize more closely and their restrictions become stricter, Zcash holders are advised to transfer their funds to protected addresses to secureguard the values of privacy and financial independence.
