Since the hard fork on March, 02 2018, ZClassic (ZCL) price has been on a mission to regain its lost strength. However, with the current cryptocurrency market struggling ZCL needs to do the utmost to regain its $200 tag. The coin faced a catastrophic drop in price immediately after the fork as it dropped to below $10 from an all-time high of $235 two months earlier. The coin currently trades at $4.51 on Bittrex exchange as at time of writing signifying 98% drop in price since January. Since the snapshot and later the fork, the coin has been on the red.
Even in this highly volatile market of cryptocurrencies, such a drop is considered way above normal. What could be the cause of such a drop in major exchanges across the world? Did the removal of ZClassic from Bittrex exchange have such an impact? Or is it just another case of foolery and manipulation? This article aims at explaining the after effects of the Bitcoin Private Snapshot and hard fork process. We also delineate some of the factors that may have caused the massive drop in ZCL price after these recent major events.
What is the Bitcoin Private (BTCP) Snapshot and hard fork?
ZClassic (ZCL) development team announced the double fork to ZCL blockchain and BTC blockchain that would occur 2 days after the Snapshot. The Snapshot was taken at a specific time when a specific block had been successfully mined on the February 28 ensuring the fork was complete.
This hard fork created the new Bitcoin Private (BTCP) coin and anyone owning ZCL at the time of the snapshot was rewarded with these new tokens. This was seen as a move to develop a more private coin that supplements the original Bitcoin. It solves the publicity problem that BTC faces and is also scalable. However, the fork was not a success as many hoped it would be.
Why the fork failed ZCL
- Bearish markets
For any financial asset coming to the market, timing is key. The fork happened at a time the whole market was in a bloodbath. People increasingly bought in a view to sell as soon as the snapshot supervenes. The market was bearish and for any rationale investor any opportunity to sell at a profit was taken by both hands. This is evident as the price returned to its median prices below $10 soon after the snapshot from highs close to $300 two months earlier.
- Gain a quick buck from Bitcoin Private
It has been a recurring trend for coins to see a massive boost in price before a fork only for the price to dip afterwards as was the case with ZCL. During the months of January and February, ZCL saw a massive pump with buyers expecting to receive the free Bitcoin Private coins. Many Reddit users spoke of their intentions to buy ZCL, gain the free BTCP in their wallets and then dump ZCL.
- Competition with ZCash
Bitcoin has had various forks; Bitcoin Cash (BCH), Bitcoin Gold (BTG) and currently Bitcoin Private. Of all the forks, only Bitcoin Cash seems to survive the course even with constant criticism. The reason the rest of the forks still flourish is probably due to having the name Bitcoin before them. However, ZCL cannot rely on ZCash to offer it a survival plate in the same manner. ZEC itself is not as huge in market cap ranking with the two Bitcoin forks above it.
First, you need to understand that ZCL is a fork to ZCash (ZEC) blockchain. ZCL was forked to solve the problems facing ZEC blockchain. They both provide extreme security measures and private/anonymous transactions.
The major difference between the two cryptocurrencies is the 20% block reward that is used a development fee on ZCash. This is one of the main reasons a part of the community decided to fork from ZCash block chain to ZClassic. ZCash also enjoys a connection with JP Morgan bank while ZCL is not backed by any major financial corporation.
Actually, ZCash has been tipped to reach $60,000 by 2025 due to its advanced anonymity features that allow users to use it as a store wealth. How to pick the limelight that ZCash is enjoying at the moment is one of the most important issues that ZClassic (ZCL) has to deal with to boost its price.