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ZClassic (ZCL) and the Reason Behind the 97% Drop

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ZCL
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ZClassic was viewed upon as a new opportunity in the world of crypto values, especially for miners. After having ZClassic derived from the original blockchain of ZCash, miners were thrilled knowing that they won’t need to be giving some of their profit, 20% to be exact, to the development team behind ZCash, but were able of that moment to keep all the mined coins in their own wallets. However, something without a doubt went wrong as ZClassic fell for the amazingly horrific 97% from the moment of being forked from ZCash. ZCash, on the other hand, kept up the good work on the market, maintaining its price above 200$ for a long period of time already. What went wrong with ZClassic and what kind of future is expected from ZCL in the following months?

What Went Wrong with ZClassic?

ZClassic was originated out of the hard fork ZCash went through. After ZCash had its first hard fork ever, ZClassic was the product that remained afterward. The main reason for having been adopting ZClassic is the fact that the miners can mine ZCL without having to give a part of their mined goods to the developers and the team behind ZCL. While mining ZClassic, miners have generated more ZCL coins as opposed to the number of coins of ZCash that are currently in circulation. So now there are nearly 30.000 more ZCL coins that are circulating the market.

Although this situation was pretty benevolent for miners as they could keep all their mined coins in their wallet and use them for whichever purpose intended, something went wrong with the price along the way.

A huge gap in the market price appeared between ZCash and ZClassic, which was viewed upon as a great defeat for ZClassic holders. The current market capitalization of ZClassic is around 3000 BTC while ZCash has a market cap of nearly 99.000 BTC. Needless to say that the difference between the two is pretty visible as well as the fact that ZCash is a definite winner in this comparison.

During the period of December of 2017 and February 2018, ZClassic was actually doing pretty well with selling at the price that was higher than the current price of ZCash, hovering around the value of 235$ per one unit of ZCL.

But as of the mid-February when the most recent market dip started off and went on lasting for eight weeks, ZClassic came out of the market dip as one of the biggest losers on the market with 97% of its market capitalization lost to the bad state of the market. But, how come other coins didn’t lose so much on the value when compared to ZClassic?

It seemed that the developers might have given up on ZClassic, while miners were taking advantage of a great opportunity to proactively mine coins with over 200$ price per one unit. Somewhere along the way, probably because of being neglected, ZCL lost its value while ZCash managed to keep up with its positive pace of growth still hovering around 200$ price per one unit. That is how ZClassic ended up below 300th place on the global coin ranking list while ZCash is standing its ground on the 25th spot.

While ZCL was still worth 235$ per one unit, investors and traders were fairly interested in the coin, but as the investors noticed that ZClassic is not making any progress on the field of technological improvements without a clearly stated roadmap, they have probably given up on ZCL while its price immediately started to fall as a consequence.

It is a fact that a digital asset must go hand in hand with improvements and modifications in order to perfect the blockchain technology, and ZClassic just couldn’t keep up with the “trend”. So while other dev teams were working on correcting flaws in their networks and sealing partnership in order to sky-rocket their coins and networks, ZClassic was ravaged by miners while being fairly neglected by the dev team.

That was probably the breaking point for ZCL and at the same time the main reason why a coin that was traded at 235$ per one unit only 3 months ago is now being sold for a bit over 4$ per one coin.

There are speculations since it is the fact that ZCL is not going up for quite some time now but instead is dizzily dropping, that this coin will soon have no value, which means that there is an unfortunate chance of having ZCL being sold at 0$ pretty soon in case the coin continues to drop further from this point.

It seems that the miners forgot that you can’t just go on mining coins and keep them in your wallet without spending them or having them traded because then the coin s have no purpose and as a result, these coins are slowly becoming worthless. The dev team, in this case, seemed to have forgotten about sealing partnerships and pushing ZCL further into the crypto market to increase its attainability and worth.

That is how investors and potential partners lost their interest in ZCL, which eventually resulted in having a coin that was once worth 235$ now being traded at 4$.

However, in case the dev team has some interest in ZCL and they manage to come to their senses, they could still be able to save ZCL as 4$ isn’t that bad if you forget about the fact that this coin was once worth over 200$ per one unit.

How is ZClassic Doing at the Current Moment?

After the latest change in the market, ZClassic lost -8.68% and dropped against the dollar in the course of 24 hours.

After the initial drop, ZCL can now be purchased for 4.26$ per one unit, while ZCash is still hovering around the value of 200$ even though this coin itself is suffering from a drop while trading in the red. Still, ZCash is now worth 215$ while ZCL can be traded for a bit over 4$ per one coin.

In case ZCL continues to drop at the current rate, pretty soon this coin could lose all its value.

We will be updating our subscribers as soon as we know more. For the latest on ZCL, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Simon Hadleigh-Sparks via Flickr

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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