James Wynn cautions traders against a Zcash pump and dump by an influencer cabal during artificial price hype on X.
A strong warning was given by crypto trader James Wynn to the community to avoid purchasing Zcash (ZEC) due to a group of social media influencers allegedly carrying out a coordinated pump-and-dump operation.
The warning issued by Wynn came after a fake news report that Jurrien Timmer of Fidelity Investments had said that Zcash would be valued at $100,000 by the year 2028.
Source – X
On X, Wynn wrote, “Do not purchase Zcash, it is a pump and dump by the cabal of influencers.
Source – X
A number of traders shared the same sentiments as Wynn, pointing out that early adopters of Zcash were likely to be insider exits.
Cryptocurrency trader Rajat Soni posted on X that the ZEC rush to purchase was questionable and that people should only buy it at their own risk because they could be dumped the next time that they own it.
Source –X
This caution is a sharp contrast to the optimism of certain key opinion leaders (KOLs) in crypto communities who justify the validity of Zcash.
Influencers, Pump-and-Dump Allegations, and Market Moves
Zcash is a privacy-oriented cryptocurrency that was introduced in 2016 and utilizes a more robust zero-knowledge proof to hide the information about transactions, but leaves the overall ledger transparent.
In spite of the technical innovations, its markets have been accused of price manipulation by groups of crypto influencers informally called cabals.
These are groups that supposedly orchestrate promotional activities around a given coin, which subsequently lead to spikes in prices and sell-offs.
The warning of James Wynn goes in line with the wider cynicism of influencer-driven hype.
Some believe that Zcash has real value, whereas others believe that the recent wave of promotion efforts is well planned.
Bitwise CEO Hunter Horsley contradicted assertions that Zcash was illegitimate, but admitted that it was difficult to convince opponents that it is not a contentious asset.
In the meantime, BitMEX co-founder Arthur Hayes revealed substantial volumes of other cryptocurrencies and publicly promoted Zcash as he prepared an alleged market spurt or a correction.
Related reading: Zcash to Overtake XRP Says Arthur Hayes Following 45% Price Surge
Market Response and institutional interest.
The price of Zcash increased following the announcement of a large investment by Winklevoss Capital in Leap Therapeutics, which was shifting to collect ZEC tokens.
Leap Therapeutics has raised a total of 58.88 million in a privatization organized by the Winklevoss brothers’ firm, with approximately 50 million dollars utilized to buy over 200,000 ZEC at approximately 245.
This institutional speculation assisted the price to surge above the recent levels of correction to approximately 670 at the point of reporting.
Market watchers are still divided despite this support. Others are optimistic about the long-term prospects of Zcash as privacy technology and scalability advancements, but are worried about market manipulation by cabals.
The future of Zcash is unclear. Some influencers and companies share the value proposition, but with the warning provided by reputable traders such as James Wynn, it is important to be aware of hype-induced risks that are prevalent in crypto markets.
