2026-01-04 13:20:25

Privacy coins have recently performed remarkably well. Zcash (ZEC) has surged over 800% in the past year, far outperforming mainstream cryptocurrencies. Many are asking: is this a hype cycle or a genuine trend driven by real demand?

The key lies in a new phenomenon—corporate asset allocation involvement. Nasdaq-listed company Cypherpunk has announced it will include ZEC in its asset reserves, targeting a proportion of 5% of circulating supply. How significant is this signal? It indicates that privacy, which was previously viewed by regulators as a "problem," is gradually being recognized by institutions as an actual "necessity."

Why do institutions need privacy? Imagine large on-chain transactions. If the transaction intent is publicly traceable, it can easily become a target for "sniping." Solutions that offer auditable selective privacy (such as Zcash's view key mechanism) can both protect privacy and meet compliance requirements—precisely the pain points for institutions. Privacy is being re-priced—from a niche geek tool to a financial instrument.

But risks must be acknowledged. The regulatory environment facing privacy coins is much more complex than that of Bitcoin, and volatility is bound to be high. This is not a smooth racing track.

That said, in today's era of pervasive digital surveillance, financial privacy itself may become a scarce asset with real value. The discovery of this value often accompanies market revaluation.

ZEC-0,25%

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ChainMaskedRider

· 10h ago

An 800% increase is indeed attractive, but is this wave of institutional entry really solving pain points or just creating the next bubble? 🤔 Wait, Cypherpunk wants 5% circulating supply... Isn't this operation basically saying that there is really market demand for privacy? To put it simply, financial privacy has shifted from being a prohibited item to a necessity. The change in regulatory attitude is the key point. But I still have some concerns. The regulatory ceiling for privacy coins is indeed much lower than that of BTC, and this risk is not exaggerated. In this surveillance era, whoever controls privacy holds the power of discourse... ZEC really has something this time.

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TopBuyerBottomSeller

· 23h ago

The signal of institutional entry really can't be held back anymore, but ZEC's recent surge is too close to those who have been shouting "wolf" every day. Cypherpunk accounts for 5% of the circulating supply... Think about who dared to openly hold privacy coins two years ago? Now they have become a necessary part of asset allocation. Regulatory attitudes are indeed quietly shifting. Behind the 800% increase, I'm more concerned about whether new institutions will follow suit. That's the key to determining the ceiling. Privacy coins are originally meant to counter surveillance, but now they are being used by institutions as compliance tools... This irony is quite bitter. Recently, holding positions still requires caution. The volatility is indeed fierce. Don't be blinded by the gains. As for financial privacy, honestly, even big institutions are afraid of being targeted. The demand is real, no doubt, but who knows how far re-evaluation can go.

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MissedTheBoat

· 01-04 13:50

Institutions are bottom-fishing privacy coins, a 800% surge is taking off again? I'm cautious. --- Nasdaq-listed companies are stocking ZEC, what does that indicate? Has the regulatory attitude really changed? --- Wait, Cypherpunk aims for 5% circulation, where does this data come from? Is there a source? --- To put it simply, privacy coins are just "hedging tools" for big players; retail investors entering are just being harvested. --- Financial privacy is a necessity, I agree, but I really can't be sure how long ZEC can stay popular. --- I just want to know if exchanges will delist this due to compliance requirements; that's when the real harvest will happen. --- From geek tools to financial instruments, it sounds like another hype cycle, but I'm still observing. --- The regulatory risk of privacy coins is really much higher than BTC; with such high volatility, who dares to hold large positions? --- In this era of omnipresent surveillance, privacy has indeed become an asset, but has this surge already been overextended? --- Can Zcash's key management truly solve compliance issues? I feel regulators might not buy it.

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ShibaMillionairen't

· 01-04 13:49

800% increase? Let me check the holdings again... Cypherpunk publicly listed company buying 5% of the circulating supply, this move is really aggressive, institutions are starting to play the privacy card. The regulatory trap is still there, don’t be blinded by the surge, the story of privacy coins is not that simple. Oh my god, finally someone understands the value of financial privacy, not all on-chain transactions should be exposed. Will ZEC become the next BTC? It still feels early, depends on how the regulatory authorities play it. The demand for privacy has always been there, it's just that the big players pretended not to see it. Now they are finally forced to admit it, haha. Is this just hype? Why do I still feel a bit anxious...

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SolidityStruggler

· 01-04 13:42

An 800% surge is indeed impressive, but the Cypherpunk move here feels a bit like endorsing ZEC... Is it really about demand or just trying to ride the hype? --- Institutional entry into privacy coins? Honestly, it's still about avoiding sniper attacks, but I'm more worried about the day regulations come down hard. --- I get the logic of this auditable privacy with the key access, but can it really pass regulatory scrutiny... I’m not so sure. --- I agree that financial privacy is a scarce asset, but with such high volatility, are you really willing to go all in? --- This wave of ZEC market movement is just waiting to see subsequent regulatory actions—either becoming a new financial infrastructure or turning into a harvest for the choppers. --- From geek tools to financial instruments, it sounds great, but haven't there been enough lessons from privacy coins being delisted by exchanges in the past... --- I just want to know if Cypherpunk will really hold on or take profits when things look good—that’s the key signal.

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AlwaysQuestioning

· 01-04 13:40

Wait, does Cypherpunk really need 5% of the circulating supply? Where does this number come from for confirmation? From a different perspective, institutions want privacy mainly to avoid being exposed. Is this logic too simplistic? An 800% increase is indeed a bit crazy. Could this be another round of a leek-cutting scheme? Regarding privacy coin regulation, the attitudes of various countries differ so much. Can it truly become a financial instrument? Looking into the key management mechanism sounds good, but can it truly ensure privacy + compliance in practice?

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