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.
Zcash is completely compliant with FATF’s Travel Rule, claims ECC’s Jack Gavigan
Recently, popular South Korean exchange OKEx was in the news after it delisted all its privacy coins, including Monero [XMR], Zcash [ZEC], and DASH [DASH], along with several others. UpBit followed suit, delisting several privacy coins as well. Both exchanges went on to claim that the regulatory obligations arising from the Financial Action Task Force [FATF], primarily the FATF’s travel rule, was the reason behind the delisting.
FATF is an intergovernmental body that aims to prevent money laundering, terrorism financing and financing of weapons through its policies. In February 2019, the FATF had presented a draft citing Recommendation 16 or the “Travel rule.” As per the travel rule, cryptocurrency exchanges are required to keep all transaction information, with respect to the buyer and the seller. Privacy coins are designed to provide anonymity to users, an aspect contradictory to the FATF’s travel rule.
Just a few days after the aforementioned delisting episodes however, Zcash has now come out to claim that it is compliant with the FATF’s recommendations. Jack Gavigan, COO of Zcash, wrote a blog post claiming the same.
The blog post expanded on several aspects that highlighted the fact that the privacy coin Zcash and virtual asset service providers [VASPs] are indeed compatible with FATF recommendations. The FATF makes it mandatory for VASPs to undertake Customer Due Diligence [CDD] measures, while building business alliances. The post read,
“The fact that a VASP supports Zcash or that a customer intends to trade Zcash does not impact the VASP’s ability to carry out CDD checks.”
Regardless of Zcash being a privacy coin, VASP will still be able to observe a customer’s transactions, Jack Gavigan claimed. This allows virtual service providers to keep an eye on suspicious activities or unexpected behavior. Along with monitoring transactions, VASPs can also keep a record of the same. Transactional information for deposits and withdrawals like customer identity, amount, receiving address, transaction ID and the sending address can all be recorded, the blogpost added in an effort to alleviate concerns.
Zcash Price Gets Drenched in Blood Due to the Market Pressure
The market is currently under huge selling pressure. The same has caused the heavy fall in the price of the altcoins. Zcash is among the few coins, which are getting widely affected by the downtrend in the market.
We are speculating that the selling pressure would soon leave and we would have the flourishing days again. The intraday traders might not be having a good day, but in the future, they would book huge profits. The coin holds a high possibility of upsurge.
Zcash Intraday Price Analysis:
The data feed is taken from Trading View on September 19, 2019, at 10:50:16 UTC for price analysis.
Yesterday, the coin opened with an escalation. The visible jump occurred when price changed from $51 to $52 by 2.63%. The price immediately shifted to $50.30 by 3.1%. The recovery in the price took it to $53.50 by 6.37%. The intraday escalation in Zcash was of 3.90% as it closed the day at $52.87. Today, the opening hours shifted the price from $52.87 to $48.55 by 8.21%. ZEC is seen hovering around $49. The rest of the day is speculated to remain same.
The market is speculated to embark the price rally soon. Zcash (ZEC) would also be seen hitting huge counters in the market. The future holds a better time for Zcash. Hence, if the traders are picking Zcash, then their investment wouldn’t go futile.
The best-suited investment for ZEC is long term investment. The same would bring colossal profit to the traders.
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.”