Zcash's native token ZEC crashed over 40% in a single day after a four-year-old vulnerability was discovered in its Orchard private transaction pool, a core feature of the privacy-focused network. The bug could have enabled counterfeit ZEC minting, though it remains unknown whether it was exploited. Analysts attribute the ferocity of the drop to uncertainty over potential exploitation. The token fell from around $600 to briefly below $300, cutting billions from its market cap. Despite this crash, ZEC is up over 580% in the past year. Bitwise analyst Ish Asad noted the selloff reflects market overreaction, as the fundamental story of Zcash as a privacy-focused Bitcoin clone remains unchanged. BitMEX founder Arthur Hayes said he sold his entire ZEC bag due to the uncertainty, though he believes privacy is priceless and may buy back at higher prices. Nansen analyst Nicolai Sondergaard stated the price reaction reflects uncertainty more than the bug itself, while Jake Kennis added that a rebound would require either a broader privacy narrative or a major protocol catalyst.

Key facts

• ZEC price crashed over 40% after Orchard pool vulnerability discovery.
• Vulnerability could enable unlimited counterfeit ZEC minting; exploitation status unknown.
• ZEC fell from ~$600 to under $300, erasing billions in market cap.
• Token still up over 580% in past year despite crash.
• Analysts say market overreacted; fundamentals unchanged.

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