Coinbase Adds Privacy-Centric Crypto Zcash to Pro Trading Exchange



via Coindesk

Coinbase Adds Privacy-Centric Crypto Zcash to Pro Trading Exchange

Crypto exchange Coinbase Pro is adding privacy coin zcash to its listings.

The platform announced Thursday that customers can transfer zcash into its professional trading platform, though as with previous additions, users can not yet purchase the token until the exchange has established enough liquidity. Deposits will be accepted for at least 12 hours after the announcement at 18:00 UTC.

When trading is enabled, only Coinbase Pro users in most of the U.S., UK, European Union, Canada, Singapore and Australia will be able to access the coin. New York residents and other jurisdictions may receive access at a later date.

The exchange did not announce when or mobile app users would be able to begin trading the cryptocurrency.

Due to the nature of the privacy coin, full support is not yet being added. As the post explains, zcash offers both transparent and shielded transaction types, which show different amounts of information about a transaction. In particular, shielded addresses are anonymized, while transparent transactions are traceable, like bitcoin.

The post goes on to say:

“Initially, we will support deposits from both transparent and shielded addresses, but only support withdrawals to transparent addresses. In the future, we’ll explore support for withdrawals to shielded addresses in locations where it complies with local laws.”

Market response

Upon official word of the listing from Coinbase Pro, the price of zcash began a significant uptick at 18:00 UTC. Just five minutes later the cryptocurrency had jumped 15 percent to reach a 9-day high of $99.13, according to data from the Binance exchange.

At the time of writing, ZEC has cooled off and is now trading at $93. The coin has accumulated $155 million in 24-hour trading volume across exchanges, according to data from CoinMarketCap.


ZCash (ZEC) Crashes Fast after Coinbase Debut

via cryptovest

A listing on Coinbase seems to be more as a curse than a blessing for the digital assets added to the platform. ZCash (ZEC) experienced the same crash in prices, which almost coincided with the launch of live Coinbase offers.

As of 18:00 UTC on December 5, ZEC slid from above $70 to $65 level, spending an entire week on a downward slope from recent levels above $89. For now, volumes have inched up to $162 million equivalent in 24 hours. The asset currently trades at extremely low levels, down 93% from peak prices and 80% year-on-year.

The ZCash project includes the option for anonymous transactions but also an option to reveal enough to link the transaction to an identity. ZEC has been more widely accepted than Monero (XMR), an anonymous asset that has been quietly removed from exchanges and exchange services. While services like Changelly have taken XMR out of their selection, Zcash is still available.

ZEC is viewed with skepticism for starting with a pre-mine to build a developer reward. Monero’s founder, Riccardo Spagni, suggested the ZCash project may end up as a proof-of-stake coin, based on the comments of Zooko, the lead developer of ZCash:


This makes perfect sense. Who holds a lot of $ZEC? Founders (through founder rewards). Who benefits from PoS? People with a lot of coins. PoS is essentially just making the rich richer… and if you already got the coins for free…

— WhalePanda (@WhalePanda) December 5, 2018

It is still unclear whether the ZCash project would do anything to improve its mining protocol. It has yet to make a decision to disable ASIC that mine the Equihash algorithm. In the past three months, the ZCash hashrate has grown about twice, to 2.2 GH/s, which remains a relatively low level compared to larger coins.

Since the Vertcoin 51% attack, the ZCash community has been watching out for signs that a similar attack is feasible. According to the 51crypto app, it would cost $14,919 an hour to attack the network through hired hashrate. However, there is no telling how many Equihash ASIC are available to attack the still relatively small network.

The other risk for ZEC is its trading profile at the time of the Coinbase launch. ZEC mostly trades in pairs with Bitcoin (BTC) and Ethereum (ETH), with only a small portion attributed to USDT trading. LBank, a crypto-only exchange, is highly prominent and sets the price. The effect of direct Coinbase buying, which limits the size of the orders and excludes New York buyers, is yet to be seen for this relatively new digital asset.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.