Dragonfly Partner Says Firm Still Holds Zcash After ZEC Vulnerability Concerns

Crypto investment firm Dragonfly said any market impact from the recently flagged vulnerability in Zcash (ZEC) would have been limited even if it had been exploited.

Dragonfly partner Haseeb Qureshi wrote on X, formerly Twitter, on June 6 that it would have been difficult for a large volume of counterfeit supply to flow into the market even if the flaw had been abused. That is because most market liquidity is concentrated in regular tokens.

If the vulnerability was exploited, it would mainly have affected holders of shielded Zcash, the network’s private transaction feature, he added. Over the past 48 hours, the share of the shielded pool in total supply fell only from 31% to 30%, with no signs of a large-scale outflow of funds.

Qureshi also said Dragonfly still holds Zcash and remains positive on the Zcash ecosystem.