Zcash Losses Deepen to 35% as Orchard Pool Identified as Source of Minting Flaw

In a move that has raised significant concerns regarding the integrity of privacy-focused cryptocurrencies, Zcash's decline deepened to 35%. A security researcher identified the Orchard privacy pool as the specific source of a vulnerability that could have allowed for unlimited counterfeit minting, threatening the asset's economic scarcity. According to reports, the flaw was fixed within days, and findings suggest that actual exploitation of the bug is unlikely.

This collapse comes amid intense selling pressure, with Santiment data tracking whale exits at $536.6 and retail investors exiting at $518.9. Compared to peers, Monero (XMR) has maintained relative stability per market data, while Zcash suffers a blow to its technical reputation. The 35% drop reflects a rapid loss of confidence in the protocol's security mechanisms, echoing past incidents in networks like Horizon that faced similar challenges in zero-knowledge proof architectures.

Traders should monitor ZEC support levels following this aggressive sell-off, as the price settled at depressed levels (close June 4, 2026). Looking at the economic calendar, upcoming German Inflation Rate data on June 5, 2026, may influence broader risk appetite in digital asset markets. Focus remains on any additional reports from the Zcash development team confirming no illegal inflation of the total supply occurred to ensure future price stability.