You are here

Crypto world praises ZCash (ZEC) team for not leaking Gemini announcement

Businessman clasping briefcase to his chest

Insider trading is so common in the largely unregulated cryptocurrency markets that not using privileged information to take advantage of the market is enough to get you compliments from across the sector.

The price of a crypto-asset almost always increases when it is added to a major exchange like Gemini or Coinbase. If you know that such a move is coming, there is a temptation to buy that asset before the news is announced and take advantage of the price increase. Word often gets out in advance, which means that the asset’s price and trading volume increases in the build up to good news.

However, in the case of Zcash’s surprise addition to the Gemini platform, price and volume did not preempt the official announcement: the Zcash team both kept it a secret, and did not act on their privileged information. Founder Zooko Wilcox said that he was “proud” of his team, and posted a graph to Twitter showing ZEC trading before and after the news became public.

Wilcox also pointed out that neither was there any anticipatory increase in price and volume in the run-up to Zcash’s announcement of a partnership with JP Morgan last year.

Other large players in the crypto sphere congratulated Zcash for managing to keep a lid on the news. Ari Paul, CIO of crypto hedge fund BlockTower Capital described it as “really impressive”.

Paul’s sentiments were echoed by crypto portfolio manager Matt Galligan, who said that Zcash was the “example by which all teams that have a cryptoasset on the market should be held to”.

Although Gemini offering Litecoin and Bitcoin Cash had been widely expected, no one had predicted that this most prestigious, regulated and mainstream of exchanges would add the privacy-focused Zcash. Gemini now becomes the “first licensed Zcash exchange in the world,” while the New York State Department of Financial Services (NYDFS) becomes the “first regulatory agency in the world to supervise Zcash” in what amounts to a surprisingly quick move into the mainstream for ZEC.

Image From Shutterstock

Related posts

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.