Users of Coinbase in the UK continue to hear bad news. This one is specifically going out to the holders of Zcash. This rumour started to float around this week when the cryptocurrency was all of a sudden dropped by the US giant.
Coinbase and the UK Banking giant Barclays recently ended their relationship and now Coinbase is now banking with ClearBank who allegedly demanded that Zcash was to be delisted.
The Editorial Director for the American Institute for Economic Research, Jeffrey Tucker commented on the split and suggested that it might portend more ‘headwinds’ for the USexchange than for Zcash itself.
“Another solution for moving from Coinbase crypto to cash and back again will emerge. At the same time, it is not getting easier for crypto banking institutions like Coinbase. It is getting harder. Keep in mind that Coinbase is a financial intermediary itself, of the very type that crypto was supposed to make unnecessary.”
“There is a growing consensus that traditional Bitcoin, which enjoys a 65% market domination, is not suitable as a means of exchange. Other tokens might benefit from this shift. But the market is extremely crowded and will continue to shake itself out in the coming years.”
Tedra Desue writes for CCN that Zcash is embraced by holders due to its optional privacy features. But the ‘anonymous’ token has concerns surrounding it about it not-passing regulatory muster in the UK.
Holders of Zcash in the UK now have until 26th August to convert their holdings into any othercryptocurrency or run the risk of having them forcibly converted into British sterling.
Currently priced at $50 following an 8.29 percent change in value, Zcash is in the red, much like the rest of the market.
Zcash Foundation, ECC resume trademark negotiation deal amid fears of fallout
Although ECC has held complete authority over the trademark since the beginning, ECC was planning to hand over partial ownership for the use of the trademark. However, Zooko Wilcox, Head of the ECC, has said that sharing veto power over the use of the trademark would have made it quite complicated for users to follow Zcash terms. In a statement released last week on the Zcash public forum, Wilcox wrote,
“The bottom line is that the previous plan to lock the trademark into a 2-of-2, double-veto governance structure with the [Zcash Foundation] has not (at least not yet) been implemented, and the trademark currently remains under the unilateral control of [the] ECC.”
Zcash Foundation published a blog on 2 September, a blogpost that informed the community about the failed negotiation with the ECC, while also halting its own efforts in sorting out the impending funding crisis on the network. The blog post by Josh Cincinnati, who also heads the Zcash foundation, wrote,
“We are delaying our community sentiment collection and any decision-making regarding NU4 until the ECC recommits to the 2-of-2 agreement that was already agreed upon.”
ECC and ZCash Foundation resumes private discussions
After failed negotiations and after the Zcash Foundation threatened to halt any further progress on the network, things have started to change for the better. Wilcox released a statement on 5 September stating that they have initiated private discussions to resume discussions on the issue. The statement assured the community that both parties can reach a mutual agreement, an agreement which would be beneficial for a “diverse set of Zcash stakeholders and community members.”
Wilcox, while addressing the recent disagreement and the blog released by Zcash foundation had said,
“Public disagreements are rarely fun, they are often unavoidable and necessary aspect of good governance.”
Foundation Says Developer of Zcash (ZEC) Violated Trademark Promise
A crisis is happening in the Zcash (ZEC) community. The nonprofit Zcash Foundation has recently accused the Electric Coin Company (ECC) of promising to let the foundation share its trademark and then backing down afterward.
According to the foundation, this has lowered the whole ecosystem to the level of “decentralization theater”. The people are at the foundation are so mad because the community has been awaiting a lot for this moment. The promise was originally made back in 2017.
Even during a recent convention, the CEO of the ECC Zooko Wilcox affirmed that both organizations were committed to be partners and to lead the way together. At the time, Wilcox affirmed that the trademark would be shared. This was only months ago. The CEO affirmed that the partnership would have long and good effects in the industry, so it is surprising so see the decision changing so much.
It seems that this event will deeply affect the Zcash community. The members of the foundation have complained that this decision will harm several projects that were being planned or developed and that this will harm the community a lot.
They have also argued that by arbitrarily holding the trademark, the company will have a lot of power and that the foundation will not lend its credibility to legitimize a process that was said to be hollow.
Finally, the foundation also criticized the ECC for its excuse to deny trademark sharing. According to the company, they envision “the evolution of alternative governance models”. This was written off as yet another hollow promise from a company that cannot be trusted anymore.
Zcash’s for-profit developer reveals block reward distribution while its average monthly deficit soars
The Electric Coin Company’s privacy-focused coin, Zcash, was in the news lately after the San Francisco-based cryptocurrency exchange, Coinbase, announced that it no longer supported the altcoin for UK customers. The exchange did not disclose any details for the delisting of the coin, which in turn led to several speculations by the crypto-community. A recent notice circulated by the British tax agency, HMRC, requiring exchanges to submit customer and transaction-related information was speculated to be the reason for the abrupt delisting.
The ECC recently released its Q3 transparency report which encapsulated the company’s various financial activities. The report detailed how the mining reward was divided among various sectors of the company; that is the miners, founders, the employees, the Zcash Foundation, the Electric Coin Company, and ECC employees. The present block reward for Zcash is 12.5 ZEC and each of the aforementioned groups receives a different share of block rewards.
Along with the transaction fee, miners receive 80% of the reward, while the founders receive about 12.8%. The Zcash Foundation holds about 3%, while the ECC receives only 2.8% of the reward. Finally, ECC employees receive about 1.4% of the total Zcash block reward. The report further revealed that ECC’s share of mining rewards was used to finance various sectors of the Zcash ecosystem, like R&D, engineering, global adoption efforts, audits, trademark protections, and regulatory relations.
Further, the report highlighted ECC’s share during Q1 of 2019, when the price of ZEC was $55. ECC received 2.8% of the total block reward, which was $336,900. The report read,
“ECC’s three strategic priorities are to drive adoption while maintaining quality, invest in the team, and increase openness and collaboration.”
Additionally, the report suggested that the company was in possession of $5.2 million in USD and Zcash by the end of Q1. “Curtailing and deferring” certain aspects, the company was said to have reduced its monthly spending, despite the market pressure. This is notable as ECC had an average monthly deficit of over 30% in Q1 of 2019. The company currently possesses about $6.4 million worth of USD and Zcash.