Multicoin Capital Makes Big Zcash Bet as Token Jumps 37%

JOON HYOUNG LEE

Summary

U.S. crypto venture capital firm Multicoin Capital said it recently made a large investment in Zcash (ZEC).
The firm said the purchase highlights the growing importance of privacy-based stores of value (SoV).
Amid that optimism, Zcash rose 37.36%% from a day earlier and has surged more than 1500%% from a year ago.

Forecast Trend Report by Period

U.S. crypto venture capital firm Multicoin Capital has made a large investment in Zcash, the privacy-focused cryptocurrency.

Tushar Jain, Multicoin Capital's co-founder and managing partner, said at Consensus Miami on May 6 that the firm had recently bought a substantial amount of Zcash, CoinDesk reported. He did not disclose the size of the investment.

Jain said privacy-based stores of value will become increasingly important. Unlike Bitcoin, whose public wallet structure can expose holders, tokens with privacy features such as Zcash can conceal transaction records and user identities, helping reduce privacy risks.

The investment also marks a shift from Multicoin Capital's earlier stance. In a 2019 report, the firm said privacy was a valuable feature of cryptocurrencies, but not a standalone product. At the time, it said there was no need to swap Bitcoin or Ether for Zcash simply to gain privacy.

Expectations around the purchase have already lifted Zcash's price. The token was trading at $577.44 as of 8:54 p.m. in Seoul on May 6, up 37.36% from a day earlier, according to CoinMarketCap. That was more than 1,500% higher than a year earlier.

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