Zcash Founder Confirms Orchard Bug Could Allow Unlimited ZEC Creation

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 2 hours ago

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Severity of the Bug: Zcash founder Zooko Wilcox confirmed that a critical bug in the Orchard protocol could allow attackers to undetectably create unlimited counterfeit ZEC, significantly undermining market trust in ZEC's supply integrity.
Market Reaction: Following the disclosure, ZEC fell approximately 26.47% within 24 hours, with trading volume spiking to nearly $1.49 billion, indicating high market sensitivity to the vulnerability and investor concerns over supply integrity.
Fix Measures: The Zcash Foundation quickly released Zebra 4.5.3, which temporarily disabled all Orchard actions via an emergency soft fork, followed by a hard fork with Zebra 5.0.0 on June 3 that fixed the bug and restored functionality.
Future Outlook: Wilcox's proposed network upgrade aims to implement a new cryptographic mechanism to verify supply integrity, which, if successfully adopted, could have profound implications for Zcash's governance and market trust, especially in an increasingly regulated environment.

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Technical Analysis for ZEC

Technical Sentiment Analysis for Zcash (ZEC). As of , Zcash (ZEC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 8 technical signals, shows that 3 indicators are flashing buy, while 5 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for ZEC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, ZEC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Zcash (ZEC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	127.379	252.84	393.589	519.05	659.799	785.26	926.009
Fibonacci	252.84	354.532	417.357	519.05	620.742	683.567	785.26

About ZEC

Zcash is a decentralized cryptocurrency focused on privacy and anonymity. It uses the zk-SNARK zero-knowledge proof technology that allows nodes on the network to verify transactions without revealing any sensitive information about those transactions.Contrary to a common misunderstanding, the majority of cryptocurrencies on the market, including Bitcoin (BTC), are not anonymous, but rather pseudonymous; while they do not explicitly reveal the identities of their users, each user has their own public address or addresses which can be traced back to them via the methods of data science and blockchain forensics.Zcash transactions, on the other hand, still have to be relayed via a public blockchain, but unlike pseudonymous cryptocurrencies, ZEC transactions by default do not reveal the sending and receiving addresses or the amount being sent. There is an option, however, to reveal this data for the purposes of auditing or regulatory compliance.Zcash was first released on October 28, 2016, and it was originally based on Bitcoin’s codebase.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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