Gemini Co-Founder Calls Zcash Still Early as ZEC Becomes Top Choice for Laundering

The Zcash (ZEC) price has once again stayed in negative territory today after recording a robust run over the past few months. Notably, the recent decline could be attributed to a topsy-turvy scenario in the broader crypto market.

Amid this, Gemini co-founder Tyler Winklevoss said that the privacy coin is still likely to be in its early stage, in terms of adoption. On the other hand, a recent report from a renowned market expert showed that the hackers are leaning towards Zcash (ZEC) for money laundering, which has sparked discussions among market participants.

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Gemini Co-Founder Says Zcash is in Early Stages

Tyler Winklevoss, co-founder of crypto exchange Gemini, recently highlighted the limited adoption of Zcash among mainstream crypto participants. His remarks came after a discussion at TOKEN2049, where his twin brother Cameron Winklevoss asked attendees about their ZEC holdings.

According to Tyler, only around 10 people raised their hands among “thousands of people” present in the “room”. He viewed the response as evidence that Zcash adoption is still in the early stage, which has gained notable traction from market participants.

Meanwhile, the observation has also sparked discussions on the long-term potential of the privacy coin. For context, Zcash (ZEC) price has recorded gains of over 425% over the past 12 months, indicating robust interest from investors towards the asset.

However, despite its recent market performance, Zcash may still have considerable room to expand its user base, as hinted by the Gemini co-founder. Notably, Zcash distinguishes itself through privacy features that allow users to shield transaction details.

Although this capability appeals to individuals seeking greater financial confidentiality, it also creates challenges for investigators attempting to trace suspicious transfers. Meanwhile, it’s worth noting that Winklevoss Asset Services has recently filed for a Spot Zcash ETF with the US SEC, highlighting their growing interest into the asset.

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Hackers Increasingly Turn to ZEC for Stolen Funds

While the Gemini co-founder highlighted the adoption potential of Zcash, a separate report raised concerns about its use in illicit financial activity. Wu Blockchain reported that on-chain analyst Specter observed that more threat actors or hackers are moving stolen assets into ZEC.

Meanwhile, the report followed blockchain investigator ZachXBT’s disclosure concerning the Bitget exploiter, who allegedly used Zcash to shield stolen assets. Subsequent transactions reportedly involved funds linked to the Cryptobills Ledger security incident and the $12 million Triple-A exploit.

These developments suggest that attackers may be exploiting privacy features to complicate fund tracing. However, the reported transactions do not establish that Zcash itself is responsible for the underlying crimes.