- Cypherpunk, launched by Tyler Winklevoss, buys 203,775 ZEC for about $50 million and targets 5% of supply.
- Winklevoss calls Zcash “encrypted Bitcoin,” arguing privacy is the missing piece for Web3 freedom.
- Zcash, Monero and other privacy tokens are rallying as institutions and governments watch the sector.
When any of the Winklevoss brothers speak, the broader crypto community tends to listen. So, when Tyler Winklevoss recently announced the founding of Cypherpunk, it sent ripples throughout the world of Web3.
In a new tweet posted today, Tyler Winklevoss announced the forming of Cypherpunk, a company “dedicated to privacy and self-sovereignty”, which aims to achieve that goal by “accumulating, building, and supporting privacy-protecting assets and technologies.”
First Move: $50 Million In Zcash, 1.25% Of Supply
Cypherpunk was given a $50 million budget to start moving forward by buying Zcash (ZEC):
“Cypherpunk currently holds 203,775 ZEC purchased at an average price of ~$245 per coin, representing ~1.25% of the current ZEC supply,” Winklevoss said, adding that the plan is to own at least 5% of the total ZEC supply.
Zcash Framed As “Encrypted Bitcoin”
Elaborating on the idea of Cypherpunk, Winklevoss said privacy was a “precondition” for many of the freedoms we enjoy today, and that it has become a rare, vanishing commodity. He also added that they chose Zcash for its privacy features:
“If bitcoin is digital gold, Zcash is encrypted bitcoin, or digital cash.”
Cypherpunk’s move might very well mark the start of a broader privacy revival in crypto, one that parallels Bitcoin’s institutional era, just focused on digital anonymity.
Related: Arthur Hayes Ranks Zcash as Second-Largest Holding After 920% Surge
Zcash has already jumped more than 1000% since September, and other privacy coins are following suit. Monero spiked over 50% in the same timeframe, while Dash recorded a 615% jump.
Search interest in “privacy crypto” is rising, too. At the same time, governments are tracking more crypto transactions than ever before. Only recently, the US DOJ seized $14 billion in Bitcoin. Meanwhile, institutions are warming up to the idea, and Grayscale’s Zcash trust now holds $151 million in assets under management (AUM).
If more companies follow Cypherpunk’s lead, privacy-focused coins could see a wave of new money, similar to how Bitcoin got a boost from ETFs.
Could Privacy Be the Next Premium Web3 Asset Class?
Winklevoss’ announcement could mean a lot more than a simple revival of privacy in crypto. It could also turn privacy into the next premium asset class in Web3. In fact, it may already be starting. Zcash is up hundreds of percent this year, far ahead of Bitcoin and Ethereum. Trading volume is increasing dramatically, with shielded transactions rising fast.
Investors seem to be treating privacy like an insurance policy. Bitcoin is the digital gold everyone can see, while Zcash allegedly lets you move that value without being tracked. If Bitcoin hits $1 million as Winklevoss (among others) predicts, even a small slice of that market cap flowing into privacy coins would be huge.
Related: Zcash Price Prediction: Demand Returns At Trendline As Inflows Reappear Near $480
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