Zcash Criticized by Samson Mow After Market Cap Surpasses $22 Billion

Zcash has become the center of controversy in the crypto market as JAN3 CEO Samson Mow questioned the sustainability of the ZEC rally and stated that after the market capitalization surpassed $22 billion, the asset faces a correction. Mow believes that the current value of ZEC appears artificially inflated, as the cryptocurrency has gained over 1000% since the beginning of the year. He expects a return to more average price levels and doubts that there is enough capital in the market to keep the coin among the top ten cryptocurrencies. Critics of Zcash point to the historical tax on developers, high fees, and centralized governance. Bitcoin supporters consider such projects redundant, believing that second-layer solutions on the Bitcoin network already provide the necessary privacy. Meanwhile, defenders of Zcash link the rise of ZEC to the development of the project's infrastructure, as the asset has increased by 1077% over the past 12 months. In early October, developers activated the NU7 upgrade, which is expected to triple block generation speed. Additional liquidity support for ZEC has come from the launch of pools on THORChain and an influx of $306 million into a spot ETF from Grayscale, although the fund recorded an outflow of $93 million this week.

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