Crypto trader James Wynn has warned the community against purchasing Zcash, noting that the token is undergoing a ‘pump and dump’ promoted by social media influencers. James Wynn took to X to warn users after fabricated news concerning Jurrien Timmer, the director of Global Macro at Fidelity Investments, made rounds on X.
According to James Wynn, the fabricated news claimed that Timmer predicted that Zcash would soar to $108,000 by 2028. In his post, the trader wrote: “Don’t buy Zcash, it’s an orchestrated pump and dump by the influencer cabal. Do I really need to be the one to say this?” Other traders shared in Wynn’s sentiment, pointing to a pattern that resembled earlier hype-driven surges that ended in collapses after early bird investors sold their coins during market peaks to take profits.
James Wynn urges traders not to fall for the Zcash pump and dump
Crypto trader Rajat Soni also took to X to criticize the sudden enthusiasm for Zcash. “This is why I will never buy Zcash; they need exit liquidity. Buy at your own risk. You might get dumped on the second you own it,” he said. However, the warnings are a complete contrast to the optimism expressed by some crypto KOLs.
Most of them believe the privacy coin has been around for years and has enough market credibility to beat the pump-and-dump allegations. The 2016-launched blockchain privacy project is a decentralized cryptocurrency that uses zk-SNARK zero-knowledge proofs, which enables nodes to confirm transactions without revealing info such as the sender’s wallet address.
Transactions are still broadcast on a public blockchain, but Zcash conceals addresses and transaction amounts by default. However, users can still choose to reveal transaction data for auditing or regulatory purposes. Bitwise CEO Hunter Horsley also pushed back against attempts to frame Zcash as illegitimate or suspicious.
Horsley argued that naysayers who insist only Bitcoin is the legitimate crypto would have a hard time convincing the community that Zcash is a scam outright. “The ‘Bitcoin only, everything else is a scam’ crowd is going to get really twisted trying to figure out what to say about Zcash. Looking forward to the creative explanations of why Zcash is not ‘crypto, ‘” Horsley said.
Winklevoss-backed firm unveils its Zcash treasury
Another KOL, BitMEX co-founder Arthur Hayes, has made several posts on X endorsing Zcash, claiming in late October that ZEC was superior to XRP, and stating that the token’s chart was “just so stronk I aped more.” In another post, he said that “all he wants for Christmas is ZEC.” Meanwhile, Transaction data from Arkham Intelligence showed he was offloading substantial amounts of other digital assets over the weekend.
Hayes sold 520 ETH worth $1.66 million, 2.62 million ENA valued at $733,000, and 132,730 ETHFI worth $124,000 late Saturday. Despite these sales, Hayes had not moved the capital into another position, though speculation grew that he may be preparing to buy Zcash and wait for an end-of-the-year market rout. While the division over the legitimacy remains ongoing, Leap Therapeutics announced a $58.88 million private placement led by Winklevoss Capital last week.
The investment firm, founded by Cameron and Tyler Winklevoss in 2012, launched the Gemini crypto exchange in 2014. Following the investment, Leap Therapeutics said it would convert into a crypto treasury company named Cypherpunk Technologies Inc., to accumulate Zcash’s token, ZEC. The company disclosed it had already used $50 million from the placement to buy 203,775.27 ZEC at an average price of $245.37.
