Despite the acute market panic surrounding Zcash (ZEC) triggered by the recent mass resignation of the Electric Coin Company (ECC) team, a prominent whale has just placed a massive contrarian bet.
The trader has opened a 10x leveraged long position on Zcash, according to the most recent data provided by Lookonchain.
Buying the blood
The trader has gone long on 42,498 ZEC, valued at approximately $17.53 million. The entry price is roughly $412 per ZEC.
Essentially, this is an aggressive, high-conviction trade that bets on a sharp V-shaped recovery.
The trader likely believes the recent crash from $700 to the $400s was an overreaction to the governance news. They are betting that the "fear" is priced in and that ZEC is undervalued at these levels.
A heavyweight bull
Despite the nickname referencing a "short," the trader's current portfolio is overwhelmingly bullish and massive. The total visible assets are over $250 million.
The trader holds $122.84 million worth of Bitcoin (BTC), $72.16 million worth of Ethereum (ETH), as well as $33 million worth of Solana (SOL). Zcash (ZEC), his latest play, as well as XRP, come in fourth and fifth places, respectively.
Why now?
Now that the entire ECC team has called it quits, ZEC dumped hard (~26%).
If the trader believes the new cashZ team or the community can stabilize Zcash, acquiring it at $412 is a steal compared to the $10,000 targets predicted by bulls like Arthur Hayes.
Crucially, the team confirmed they are not launching a new token. Their business model will rely on the success of ZEC, but they will now operate as a private, agile startup rather than employees of a non-profit foundation.
Alex Dovbnya
Arman Shirinyan
Dan Burgin