Arthur Hayes dumps zcash holdings after Orchard Pool vulnerability revealed
Key takeaways
- Hayes, who previously championed the privacy token, said on X that while he believed it was extremely unlikely that any minting would take place, it could not be cryptographically proven impossible.
- “I read about the exploit yesterday, and didn't appreciate how it violated my narrative mental map,” said Hayes. “The 30% dump made me rethink, and I had to take profit on the entire position.”
- The vulnerability, present since 2022, was discovered on May 29 and fixed June 1, Shielded Labs said.
The token slumped more than 40%.Hayes said the incident undermined his confidence in ZEC’s supply integrity but added he may buy back in if his concerns prove unfounded.Arthur Hayes, chief investment officer of Maelstromfund, said he liquidated his entire zcash (ZEC) position after a developer disclosed a potential critical vulnerability in the network's Orchard Pool.
Hayes, who previously championed the privacy token, said on X that while he believed it was extremely unlikely that any minting would take place, it could not be cryptographically proven impossible.
The now-plugged vulnerability was disclosed by Shielded Labs, which said a major issue went undetected for four years and could have allowed a hacker to print unlimited counterfeit tokens, damaging trust in the crypto’s supply and its value. The token slumped following the announcement and was recently down 42% over 24 hours.