ZClassic (ZCL) token gained about 200% in the past 24 hours to trade at $110 levels yesterday. The underlying bullishness can be understood from the price chart which indicates a gain of 5400% or $108 in December alone. The coin had a market cap of $39 million on Wednesday. By Friday evening, the market cap shot up to $204 million. So, we tried to find out the possible reason behind the stupendous rally.
The ZClassic was created by forking Zcash block chain network. ZCash, as readers may be well aware of, offers a high level of privacy for its users, compared to Bitcoin. While the market was happy with the privacy provided through masking technology, it was uncomfortable with founders taking 20% of the rewards for four years following the release. The reward for founders represents nearly 10% of entire monetary supply.
Further, the system is built such that it would be slow and difficult to mine the first 20,000 blocks. The crypto investors were concerned that it could lead to an artificial inflation in the price. That led to the creation of ZClassic coin.
The new team, which took over ZClassic, Tweeted on December 19 that they will fork again to create an altcoin named Bitcoin Private (BCTP) and revitalize ZCL. The altcoin intended to be created is expected to work in the same manner as ZClassic. However, there will be no founders reward. That is a huge positive for the altcoin that is going to be created. Additionally, BTCP will have the same privacy technology as ZCL (zk-snarks). This means payments will be published on a public block chain, but the sender, recipient, and amount of a transaction will remain private.
More importantly, those who are holding ZCL at the time of forking will receive BCTP on a 1:1 ratio. That has triggered the rally. The forking of ZClassic block chain network will happen in mid or end January.