ZCash Price Stumbles As Pipeline Hack Puts Privacy Coins In Focus

The cyber-attack which shut down the colonial pipeline has privacy tokens under pressure. The Zcash price lost 30% from its high before bouncing.

Privacy tokens may be about to come under increased scrutiny after a series of high-profile hacks. A hacking gang targeting Taiwanese computer giant Acer had demanded a $50 Million ransom be paid in Monero.

Last week a ransomware cyber-attack on the colonial pipeline forced the operator to close down crucial infrastructure. This resulted in 45% of the east coast’s energy supply being disrupted.

The FBI suspect that Eastern European hacker group DarkSide are behind the attack.

The Zcash price has been extremely volatile following the report and that may continue for a while .

Zcash Privacy

Transactions using Zcash are totally anonymous, leaving no trace of the identities of its users.

The decentralized Cryptocurrency uses ‘zk-Snark’ technology. In a nutshell, this means that transactions are verified without revealing any sensitive information.

The Zcash price has been enjoying a resurgence in 2021 with privacy coins attracting renewed investor interest. This has seen the coin increase its market cap to a three high of $3.6 Billion based on current price and ranking as the 49th large crypto asset by valuation.

Zcash Price Outlook

At today’s high print of $371, the Zcash price had gained 590% in 2021. After the peak, a sharp sell-off saw the price retreat to $253 before recovering to its current £309.

Although 16% off the highs, the coin is still +482% so far this year.

Volatility is not new to Zcash investors, and previous declines have been bought. Including a 45% drop in April’s crypto-market melt-down.

The price remains above its key moving averages and therefore remains in an uptrend. Investors should nonetheless exercise caution, as a failure to hold the $280 mark could see the Zcash price back to the 28th of April high at $240.

Despite trading above the $320 level in 6 out-of-the-last 7 days, the price has not closed over it.

A close higher than $320 should indicate that the price has recovered and would make yesterday’s $371 high the target.

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