The Zcash Foundation has officially denied any connection to the controversial ZRC-20 token standard and CASH token, issuing a clarification after an X post mistakenly announced them as official network additions. According to the Foundation's statement, both products come from an independent third party and are not official parts of the Zcash protocol. The Foundation emphasized it had no prior knowledge of the ZRC-20 project before the matter emerged publicly, urging users to conduct their own research before interacting with these unofficial products. The incident highlights the challenges of third-party token development on established blockchain networks, where promotional material for unrelated projects can inadvertently appear through official accounts.
A prominent trader with a 79% win rate and $9.11 million in prior profits since June suffered a devastating loss of $36 million after closing a short position on Zcash. According to reports from AMBCrypto, Garrett Jin exited his 38,000 ZEC short position after three months, entering the trade when ZEC was trading at approximately $656 and exiting when it reached a high of $1,530. The forced exit came as Zcash price action moved sharply against the bearish bet, highlighting the volatility inherent in crypto trading and the risks associated with betting against a rising asset.
The derivatives markets for Zcash have rapidly built up extreme levels of leverage following the short squeeze, with Open Interest rising to approximately $3.3 billion around September 19th before dropping back to $2.9 billion. As reported by AMBCrypto, the liquidation heatmap shows heavy liquidation clusters concentrated at the $1,550 level and around $1,580, representing areas where large groups of investors may be squeezed out as they attempt to cover losses. Below the current price near $1,480, additional liquidity concentrates around $1,450 and $1,420, creating downside liquidation pockets that leave ZEC surrounded by leveraged positions on both sides.
Since the launch of Grayscale's ZEC Trust (ZCSH) on August 25th, the fund has accumulated over $270 million in assets, providing investors with a regulated route to gain ZEC exposure. According to AMBCrypto, the fund's assets have reached over $900 million, with the consistent flow of investment capital creating spot-linked demand for ZEC that doesn't require additional leverage. The upcoming 3-for-1 stock split could allow even more investors to gain exposure to ZEC, increasing the institutional investor base and potentially countering the unwind of derivatives that occurs when Open Interest returns to pre-peak levels.
Zcash has emerged as the strongest performer among the 10 largest cryptocurrencies, climbing 177.8% in a month to reach its current position as the ninth-largest token by market value at $26.47 billion. According to Lookonchain, institutional buying has intensified with Zcash ETFs recording $98.2 million in inflows during the week ending September 18, representing the largest inflow among 14 products. Assets under management rose 40.5% to $914.5 million during this period, with the recent events surrounding Zcash highlighting how swiftly positions can turn from profit to loss, serving as a reminder of the inherent risks in crypto trading. The Foundation's clarification came during significant price volatility, with ZEC experiencing large swings from $1,000 to $1,385 during September.
