ZClassic (ZCL), a privacy-centric cryptocurrency forked from Zcash to eliminate the 20% founders reward the team has for the first four years, saw its value plunge by nearly 70% today, after the much-awaited snapshot date for the Bitcoin Private (BTCP) airdrop went by.
According to data from CryptoCompare, ZClassic’s price plunged by 79.05% in a matter of minutes after the snapshot. Its price went from a high of $115 in the last 24-hour period to, at press time, $22.8. Effectively, its market cap dropped from about $400 million to $101 million.
The Bitcoin Private fork was announced back in December. Soon after, it was revealed that both Bitcoin and ZClassic users would get BTCP tokens at a 1:1 ratio, ZClassic’s price started to surge from about $4 to a $200 all-time high before it started correcting.
Bitcoin Private is another privacy-centric cryptocurrency, that uses zk-snarks – a technology found in Zcash – to obfuscate transactions. As some expected, greed for the new token saw various users buy ZCL, and subsequently dump it as soon as the snapshot that allows them to receive airdropped tokens was taken.
Data shows 94% of ZClassic’s trading volume occurs on cryptocurrency exchange Bittrex. The exchange was silent for most of the time the coin was pumping, but just hours before the fork announced it wouldn’t support the airdrop. It wrote:
“Bittrex will NOT be supporting the market for Bitcoin Private but due to issues with the Zclassic wallet, we will offer Zclassic holders on Bittrex partial support through claiming and withdrawing BTCP.”
Other cryptocurrency exchanges, on the other hand, did what they could to support the airdrop. Cryptopia, an exchange that often lists overlooked tokens, manually processed ZCL withdrawals, while crediting BTCP balances to every user who requested a withdrawal at least 8 hours before the snapshot.
Notably, this isn’t the first time ZClassic’s value pumps up before a fork. Last year, the cryptocurrency’s blockchain saw ZenCash (ZEN) fork off it. Similarly, it’s price went up from about $0.7 to nearly $10. After the fork, it dropped back down to about $1.5.