ZCash Price News: ZEC Could Drop to $200 Again as Hayes Abandons Ship

Published: June 5, 2026

Key Points

• Zcash's founder revealed a technical bug that could have allowed unauthorized minting of ZEC.
• Arthur Hayes sold his entire Zcash position following the news.
• The credibility of Zcash has been severely impacted, with potential price drops to $200.

Article Summary

Zcash (ZEC) experienced a significant decline of 30% within 24 hours after its founder, Zooko Wilcox, disclosed a critical exploit that could have permitted unauthorized parties to mint an unlimited amount of ZEC within the Orchard pool. The vulnerability was identified by Taylor Hornby, and the Shielded Labs team promptly addressed the issue, fixing the counterfeiting bug. However, Wilcox admitted that it is impossible to ascertain whether the vulnerability had been exploited prior to its discovery and resolution.

This revelation has dealt a major blow to the credibility of Zcash, a blockchain project that prides itself on maintaining the anonymity of token holders through shielded pools. The incident raises concerns about the development team's ability to ensure the integrity of the blockchain, which could have long-term implications for Zcash's future.

Market Reaction

Following the announcement of the technical issue, trading volumes surged to $3.7 billion, representing 62% of Zcash's circulating market cap, indicating strong selling pressure and market disappointment. Prominent supporter Arthur Hayes publicly announced that he had sold his entire ZEC position, stating that the exploit contradicted his investment narrative. He expressed a willingness to re-evaluate his stance and potentially repurchase ZEC at lower prices in the future.

Price Analysis

As of the latest trading session, ZEC was trading around $250, marking a staggering 46% drop in a single day and a total decline of 40% over two days. The current support level is at $300, which is critical for the price stability of ZEC. A break below this level could lead to an accelerated downtrend, potentially bringing the price down to $200, representing a 46% downside risk. The market has already seen $76 million in long positions liquidated in a single day, contributing to the volatility.

Conclusion

The Zcash project faces a significant challenge in restoring its credibility following this exploit. The market's reaction indicates a loss of confidence, and the future price trajectory will depend on the project's ability to reassure investors and maintain support levels.