Digital Currency Group CEO and founder Barry Silbert delivered on his promise about two weeks ago when he bought more Zcash (ZEC) to add to the company’s coffers.
In an official post on December 1, CEO Barry Silbert announced the purchase of $85 million in Zcash (ZEC), with an average price of $226. This is just the latest purchase for Silbert and Digital Currency Group in response to negative comments about ZEC from the community.
The price of ZEC jumped more than 7% after Silbert’s announcement, from $226.08 to $243.84. However, ZEC is down more than 20% since hitting a six-month high of more than $300 on November 26, shortly after announcing its plans to move towards Proof-of-Stake (PoS). If calculated from the peak of 5,941.8 USD set in 2016, ZEC still has a long way to return to this achievement.
At the time of writing, in the face of Bitcoin (BTC) corrective pressure towards the $56,000 region due to news of the crackdown extending to the metaverse and NFT, ZEC is trading around $218.
Silbert whale may be buying ZEC in anticipation that the project token will be exhausted due to the staking function and long-term lock time, from which the number of ZEC circulating in the market is not much, the pressure of discharge gradually decreases, from that price growth momentum is formed stronger. Note that Zcash will make the transition from Proof-of-Work to Proof-of-Stake within the next 3 years.
At the same time, the main developer of Zcash, Electric Coin company, said that users can stake a portion of their holdings into a ZEC smart contract to become validators on the ZEC blockchain. An interesting move to limit the sale comes from traditional miners to cover the cost of their mining equipment. At the same time, towards the goal of using “green” energy in mining activities.
Digital Currency Group is the parent company of the world’s largest cryptocurrency investment fund Grayscale, with $53.5 billion in total assets under management (AUM), providing investors with exposure to crypto through its trusts. Grayscale Zcash Trust currently has an AUM equivalent to approximately $79.5 million.