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Grayscale Bets $1 Million on Zcash as Privacy Coin Tumbles
Grayscale plans to direct $1 million to organisations and projects supporting Zcash, despite a recent fall in the cryptocurrency’s price. The move combines funding with a public campaign to promote the network, as interest in financial privacy grows and competition for Zcash investment products increases.
The money comes from fees on Grayscale’s Zcash ETF, and the firm says it intends to reinvest all sponsor fees for up to the fund’s first year; the commitment is voluntary and can be changed or ended. Four groups have already received $100,000 each. ZEC fell 11.3% in 24 hours to about $1,043 on Tuesday and was down roughly 19% over 30 days, though it remained about 75% higher than a year earlier.
In short
- Grayscale plans $1 million for Zcash ecosystem groups and initiatives.
- Four organisations have received $100,000 each.
- ZEC fell 11.3% in 24 hours to about $1,043.
Explained simply
Zcash is a cryptocurrency designed to let people make payments with greater privacy. Its token, ZEC, can be traded on crypto markets, where its price can rise or fall sharply.
Grayscale is an investment firm that offers funds linked to cryptocurrencies. Its Zcash exchange-traded fund gives investors a way to gain exposure to ZEC through a financial product, while charging fees to manage the fund.
Organisations supporting Zcash work on the network, its software and wider use of financial privacy. Funding for these groups may affect how the technology develops, while competition among investment firms can shape how easily investors access ZEC.