I remember back in December when ZClassic came out of nowhere(at least to me), and raised from $9 on December 26 to $235 on January 7. And it felt bad, because I wasn’t among guys that made ~2400% profit over the course of 10 days.
But the cryptocurrency market doesn’t love stable prices, and two months later the ZClassic price is around $10 again.
What is ZClassic?
ZClassic is a fork of ZCash, with some improvements. The only difference is that all mining earnings go to miners(ZCash has a 20% fee for the first 4 years), and there is no slow start as in ZCash. Since everything else is basically the same, the ZClassic falls under great privacy coins that use Zero-knowledge proving scheme, considered to be the most anonymous solution these days.
It first appeared on exchanges on Nov 10, 2016, with a closing price of $5.23. In less than a month it sank to less than a dollar, and it remained navigating from less than a dollar to $7 over the next 13 months. It wasn’t until December 26, 2017 that ZClassic reached momentum and started climbing to great heights(and profits).
After the massive gain with price at $235 on January 7, 2018 it slowly sank until hitting hard on February 6($61), to then raise again and reach ~$160 in mid February. Since then, it’s pretty much falling, most notably motivated by a new fork in Bitcoin and ZClassic- Bitcoin Private(BTCP).
Why Did ZClassic Price Drop So Much?
I did some research, and there are two main theories behind it:
#1- It was a classic pump and dump. Many people believe that ZClassic price was pumped purposefully, getting rich guys richer and poor guys poorer. When a price goes up 2400% in two weeks and then drops back 2400% in two months, it’s hard to blame them for such thinking. After all, they could be right, and the chances aren’t thin at all.
#2- People are selling due to Bitcoin Private(BTCP) fork. I see it as a yes and no. Yes for people selling due to BTCP fork coming out. No for BTCP having a long term effect on ZClassic. And I hope for both of my assumptions to show themselves as true. Some people believe that BTCP is going to kill ZClassic, but I simply don’t see why that would be the case. ZClassic didn’t kill ZCash for sure, same with Ethereum Classic, Bitcoin Cash, Litecoin etc.
If this ZClassic drop happened without BTCP showing up, it would be clearly a pump and dump. But with BTCP coming out and no other “major issues”, there is a fair chance that people are panicking over BTCP, and I think a reasonable bet on this can make us some profit.
Even if I’m wrong and it was a pump and dump, I do expect the ZClassic price to go up to some point again. If not for another reason then for another pump. And buying something that costs $10 and was worth $240 isn’t something I can resist that easy, in reasonable amount of course.