ZenCash (ZEN) Surges Over 40% After Binance Listing

The privacy-focused cryptocurrency ZenCash (ZEN) went up by over 40% (against USD) within minutes of getting listed on crypto exchange Binance at 02:30 AM (UTC) on 23 May 2018.

The announcement on Binance's website said that Binance would be opening trading for ZEN/BNB, ZEN/BTC and ZEN/ETH trading pairs at 2018/05/23 05:30 AM (UTC).

ZenCash is a fork of ZClassic (ZCL), which was derived from Zcash (ZEC), originally a clone of Bitcoin (BTC). ZenCash has had no premining and no ICO. Lke Bitcoin, it has a fixed lifetime amount of 21 million coins. It is currently mined with a Proof-of-Work (PoW) Equihash algorithm, although it may switch to a new hashing algorithm in the near future in view of the upcoming (June 2018) release of Bitmain's AntMiner Z9 Mini ASIC (Application Specific Integrated Circuit) miner.

One of the interesting things about ZenCash is its partnership with Cardano’s research and development company IOHK (with co-founder and CEO Charles Hoskinson being a senior advisor to ZenCash).

Charles Hoskinson, who is also the co-founder of Ethereum (ETH) and founder of Cardano (ADA), expressed his appreciation for ZenCash via the following tweet in late March:

To learn more about ZenCash's partnership with IOHK, you might enjoy the interview with Robert Viglione, co-founder of ZenCash and Charles Hoskinson on "The Tatiana Show" on YouTube.

In addition to Binance, ZenCash is listed on the 13 other crypto exchanges including Bittrex, and OKEx.

After today's jump in price, as of press time, ZenCash's price is at $45.45, which means a market cap of $177,850,704, and a place (87) amongst the top 100 cryptocurrencies.

 

Featured Image Credit: "data security privacy" by "www.shopcatalog.com" via Flickr; licensed under "CC BY 2.0"

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Trans-Fee Mining Crypto Exchange 'FCoin' Insolvent After Mistakenly Being Too Generous

One of the first cryptocurrency exchanges to adopt the controversial trans-fee mining (TFM) model, which has been called a “disguised ICO” has paused trading and withdrawals over a shortage of crypto worth up to $130 million.

According to a statement published by FCoin’s founder Zhang Jian, a former Huobi CTO, the exchange is now unable to process withdrawals as its reserves are down by between 7,000 to 13,000 bitcoin, worth over $130 million at press time, over an issue that’s “a little too complicated to be explained in a single sentence.”

Zhang’s statement details the cryptocurrency exchange wasn’t hacked, nor is it pulling an exit scam on its users. He detailed that an internal system error gave users more mining rewards than they should have received, noting the error wasn’t detected for a long period of time.

The transaction-fee mining model, which saw FCoin’s trading volume surpass $5 billion per 24 hours numerous times, sees the cryptocurrency exchange incentivize trading via its own token, FT. FCoin reimbursed users for transaction fees paid in BTC or ETH with FTs until 51% of the coin’s supply was distributed, and redistributed 80% of the BTC and ETH it collected to those holding FT tokens.

The controversial model drew criticism and saw Zhang defend it, claiming it was a misunderstood invention. At the time, he said:

If you look back at history, all new things were not recognized at the beginning. Many were believed to be fraud. Jack Ma was recognized as a fraud when he first promoted the internet in China.

Various cryptocurrency exchanges started adopting the TFM model shortly after, with research showing these platforms had unusually thin order books and low traffic taking into account the trading volumes they had.

According to Zhang, the errors in FCoin’s system gave away too many tokens in mining rewards from mid-2018 to mid-2019, when a complete back-end auditing system was implemented. As throughout 2019 the price of FT kept on dropping, Zhang and his team reportedly used their own funds to buy back tokens and drive up demand, a decision he claims was an error.

This, as it gave users a chance to sell their FT tokens and withdraw as much as possible from their accounts, while FCoin bought up tokens that kept on losing value. Zhang’s announcement came shortly after FCoin suspended its platform over a risk-control issue.

Zhang is now reportedly manually processing users’ withdrawal requests sent via email. The founder of the exchange claimed he will “switch tracks” to start again, and noted he hopes he can use the profits made from new ventures to “compensate everyone for their losses.”

Featured image via Unsplash.