Last week, Zcash (ZEC) was launched on Coinbase Pro. This was a good thing that brought a lot of excitement to the Zcash community. Yesterday, Coinbase announced that it now supports ZEC on the Coinbase.com. Users who are registered can buy, send, sell, store, or receive ZEC anytime they like.
Zcash (ZEC) Gets Added On Coinbase.com
Coinbase customers in most places can access ZEC on the platform. The only exceptions are the state of New York and the United Kingdom. The good thing is that Coinbase is going to consider adding support in these places soon.
Last week, when ZEC was listed on Coinbase Pro, the price went up a little and later fell by 17%. This was discouraging because Coinbase listings have been known to give cryptocurrencies a boost in price. Over the years, each time Coinbase announces that it has added a new cryptocurrency to its list, the price action of that cryptocurrency changes for the better. This has been termed the “Coinbase Effect”. Unfortunately, thanks to the strong bearish pressure in the market, the price of ZEC fell instead of rising against the USD. The same thing happened yesterday when Coinbase announced that ZEC is now available of Coinbase.com.
Zcash (ZEC) Price Today – ZEC / USD
According to the announcement, Coinbase will only offer partial support for shielded transactions on Zcash. The privacy-focused transaction shielding will only be fully implemented after regulators give the go ahead. Part of the statement from Coinbase was as follows:
“Most times, the unencrypted version of protocols give third parties the power to see metadata associated with the transaction or communication. The shield option protects this information. Our customers will be able to receive ZEC from transparent and shielded addresses but will only be able to send from transparent addresses. In the future, when the regulators amend their rules, we will consider making this option available”.
How Has Crypto Twitter Reacted To This Announcement?
As expected, there have been different reactions to the listing. While some people were excited about the listing, some others weren’t impressed at all. A few people on cryptocurrency Twitter speculated that this development may affect the privacy settings of Zcash. The theory is that the privacy setting of Zcash is its core feature and it is secured through zero-knowledge cryptography.
This zero-knowledge cryptography might be compromised now that the cryptocurrency has gone live on Coinbase. How so? Well, Coinbase is a United States based company and so it is subject to state and federal laws. This includes supervision by the Securities and Exchange Commission. It must also meet FINRA KYC/AML requirements. Because of the nature of the Zcash blockchain, developing a KYC to trade the cryptocurrency is going to contradict everything it stands for. This means that every customer who trades privately with ZEC will be exposed if they use Coinbase.
“As the cryptocurrency industry matures, I believe, privacy protection is a mandate held by many cryptocurrency exchanges, financial institutions and governments. This will lead to a broad adoption of Zcash.”
Zcash (ZEC) Price Analysis
Currently, ZEC is trading red against the USD at $67.54. This shows that it is down by 7.44% against the USD and down by 6.26% against BTC. The trading volume over a 24 hour period is $168,644,157 and the market capitalization is $363,928,422.