F2Pool Co-founder Criticized Zcash Amid the ZEC Rally

• F2Pool co-founder Chun Wang called Zcash’s surge a “narrative bid.”
• He criticized ZEC’s initial distribution, privacy model, the project’s governance history, and the Orchard vulnerability.
• Over the past week, ZEC gained about 30% and secured a spot in the top 10 crypto assets by market cap.
• At the time of writing, the coin is trading near $1,130.

F2Pool mining pool co-founder Chun Wang criticized Zcash (ZEC) amid a sharp rise in the asset’s price and its move into the top 10 cryptocurrencies by market cap. He called the current ZEC rally a “narrative bid,” saying that a high market valuation on its own does not indicate the project’s fundamental value.

In particular, Wang pointed to ZEC’s initial distribution model. In the first four years, 20% of each block reward was allocated under the Founders’ Reward to founders, employees, advisors, and early investors. 

Over that period, they were entitled to up to 2.1 million ZEC — 10% of the maximum supply of 21 million coins. After the Founders’ Reward program ended, it was replaced by a mechanism to fund the project’s development, which was later revised several times.

The entrepreneur also criticized Zcash’s privacy model. In his view, because the use of shielded transactions has historically remained optional, the project’s privacy has largely turned into a marketing narrative.

Another point Wang raised was the conflict involving Electric Coin Company (ECC). As a reminder, in January 2026, the team behind Zcash’s key developer left the company after disagreements with the board of the nonprofit Bootstrap. The sides described the reasons for the conflict differently, while emphasizing that it did not affect the protocol itself. 

Wang also recalled a vulnerability in the Orchard shielded pool. It was discovered in late May 2026. In theory, the bug made it possible to create unbacked ZEC in a way that would make exploitation impossible to conclusively determine from the blockchain. 

In July, the Ironwood upgrade was activated on the Zcash network, introducing a new shielded pool and a supply integrity verification mechanism. The developers said there was no evidence the vulnerability had been exploited. 

In a separate post, F2Pool co-founder Wang said that around six years ago he blocked Zcash representatives after a team member repeatedly mixed up the EST and EDT time zones. Wang called it one of the best decisions he has ever made. 

As an analogy, he recalled BlockFi’s 2021 mistake involving incorrect reward payouts, although that incident was not directly related to Zcash.

How the ZEC Price Changed

Zcash’s rally accelerated in the second half of August. On August 24, ZEC gained more than 60% over the week and, at its peak, rose above $880. Factors cited included expectations around converting the Grayscale Zcash Trust into a spot ETF, a potential short squeeze, and growing interest in privacy coins. 

On August 25, trading in the fund mentioned above began on NYSE Arca. By September 4, Zcash’s price surpassed $1,000. At that point, the asset was up more than 30% over the week, entered the top 10, and its market capitalization exceeded $17 billion.

At the time of writing, ZEC is trading around $1,130. According to CoinGecko, the asset has lost about 4% over the past 24 hours, but remains roughly 31% above its level a week ago. 

Zcash’s market capitalization stands at around $19 billion, and the asset itself ranks ninth in the service’s standings. On the daily chart, quotes traded in a range of roughly $1,115 to $1,210.

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