End of the Dark Times?
There is some optimism in the air again and we are back to checking the price every ten minutes. It appears the four-month downward trend is changing. Once again, almost every cryptocurrency is going up in price. Strangely, Zclassic, an abandoned project, has not been left out of the action. We discuss why this is unbelievable in this article.
The Zclassic weekly chart on coinmarketcap.com shows a 428.6 % increase in price. At the time of writing, the price sits at $24.3. It was $5.4 exactly a week ago and $14.2 24 hours ago.
Declared Dead By Developers
Zclassic was a fork of Zcash which removed the feature that gave 20% of the miner rewards to the founders. It was also recently forked into Bitcoin Private in the first ever “spork” of two coins into another. Bitcoin and Zclassic were forked into Bitcoin Private in February 2018. Holders of Bitcoin and/or Zclassic got Bitcoin Private for free based on the amounts of Bitcoin or Zclassic they held.
Since Zclassic was a cheaper way of getting Bitcoin Private, the price of Zclassic went from below $10 to as high as $200 dollars before the fork. It, of course, fell back below $10 as expected after the fork. The expectation was that it would die out.
After, the fork, the developers of Zclassic announced that the cryptocurrency was going to be abandoned and all focus placed on Bitcoin Private.
Why The Zclassic Pump?
A pump and dump is the first thing that comes to mind. There are numerous pump and dump groups on various social media platforms. These groups simply pick coins to pump for the single purpose of dumping them when the price appreciates enough for them to make insane gains. Zclassic may have simply been picked by some of these groups at this time.
Another explanation is that there could be something coming up for the abandoned cryptocurrencies. It is common for people to continue to work on coins left behind by their development teams. Ethereum Classic is a classic example of this. It is likely there are people with plans to repeat what was done with Bitcoin and create privacy forks of other top altcoins like Litecoin.
What We Learn From This
When Bitcoin’s price gradually fell from its previous all-time-highs of nearly $20,000 and stayed down for months, most people were of the view that the bubble had popped and the market had become more mature and rational. Clearly, this is not yet the case. Not when a cryptocurrency that has been declared dead by its developers goes up to insane levels in a matter of days.
On the other hand, if this pump has a reason behind it, then things could get even more interesting for holders. We will be here following how this unfolds.