The price of ZEC surged to $243.84 following Silbert’s announcement but
has still fallen more than 20% since reaching a six-month high of more
than $300 on Thursday.
Digital Currency Group CEO and founder Barry Silbert has purchased
more ZCash to add to his company’s coffers as the price of the token
moved above $240 for the first time in days.
In a Wednesday tweet to his more than 678,000 followers, Silbert announced the purchase of $85 million in Zcash (ZEC),
or roughly 376,106 tokens assuming an average price of $226. The buy is
just the latest for Silbert, who seems to be portraying himself as a
contrarian in the crypto market — responding to negative comments on ZEC
by purchasing millions more.
According to data from Cointelegraph Markets Pro,
the price of ZEC surged more than 7% following Silbert’s announcement,
from $226.08 to $243.84. However, it has fallen more than 20% since
reaching a six-month high of more than $300 on Thursday, shortly after
its core protocol's transition from proof-of-work to proof-of-stake.
Crypto
whales like Silbert may be buying ZEC in anticipation of more of the
project’s tokens going out of circulation due to lockup periods. Zcash’s
main developer, Electric Coin Company, announced
on Friday that users would be able to stake a portion of their holdings
into a dedicated ZEC smart contract to become validators on its
blockchain.
Digital
Currency Group operates Grayscale, a $53.5 billion AUM digital asset
manager th offers investors exposure to cryptocurrencies through its
trusts. The firm first listed its Grayscale Zcash Trust on the OTCQX Best Market in October. Silbert has also hinted that the company is making plans to convert its Bitcoin Trust into a spot-settled Bitcoin exchange-traded fund.
source link : https://cointelegraph.com/news/zcash-surges-7-after-digital-currency-group-ceo-announces-85m-purchase
