Dan Held, a former Kraken marketing executive, reported that prominent Bitcoin investors with eight- and nine-figure net worths encouraged him to purchase Zcash. These investors, who have been active in the Bitcoin market since 2013, reportedly spent three to six months urging him to acquire ZEC tokens while the price fluctuated between $100 and $400.
To fund their Zcash positions, many of these whales reduced their long-term Bitcoin holdings by one-fifth to one-eighth. The Zcash token recently surpassed the $1,000 threshold for the first time in nearly a decade. This upward momentum has been further supported by increased inflows into the Grayscale ZCSH fund, contributing to a 182% price increase over the last three months.
Despite the rally, Held remains skeptical of the asset, citing concerns over Zcash's supply auditability compared to Bitcoin's fixed 21 million supply cap. He referenced a period of uncertainty regarding the circulating supply of ZEC that occurred six to twelve months ago. Held noted that he typically avoids assets that are already popular, preferring investments that were previously overlooked by the broader market.
The recent price surge has also triggered a short squeeze, reflecting a rapid shift in market sentiment. Held suggested that evaluating the long-term success of these whale-led investments will require observing a full market cycle. He maintains that crypto narratives often emerge only after significant price movements have already occurred, rather than preceding them.
