How do ZEC promoters view the "vulnerability crisis": Arthur Hayes liquidates, Naval remains silent, and the largest ZEC treasury firmly optimistic

Mars Finance News, on June 5, the privacy coin Zcash (ZEC) faced a market sell-off after reports surfaced of a security vulnerability that could potentially enable unlimited minting, and the coin’s price at one point fell more than 50% in a single day. The incident quickly sparked heated debate across the crypto industry, with multiple well-known investors and analysts questioning the outlook for the privacy-coin track. Although the development team emphasized that the likelihood of the vulnerability being exploited is extremely low, market concerns have touched the most fundamental value basis of Zcash—namely, the credibility of its supply.

In this round of the ZEC uptrend, the KOL with high-frequency trading calls—Arthur Hayes—said earlier today that, affected by the Orchard Pool vulnerability, he has sold all of his ZEC holdings. When he read about the vulnerability yesterday, he did not initially realize how it would undermine his framework for understanding the ZEC narrative, but the subsequent 30% drop in ZEC prompted him to reconsider and decide to take profits on his entire position. Although he believes the chance of inflation occurring is extremely low, it cannot be formally proven impossible in cryptography. Going forward, he will continue to reassess his view; if the assumption is proven wrong, he will buy back, hoping that the price will be lower at that time.

As the principal figure behind the largest ZEC treasury, Cypherpunk Technologies, Gemini co-founder Tyler Winklevoss took a more calm and indifferent stance toward this incident. He said that vulnerabilities are inevitable in software. The core of software security is, in essence, an endless race between good and evil. The side of justice must always stay at least one step ahead of the side of evil. AI has not changed the essence of this game of cat and mouse—it has only accelerated it. Every piece of software must take part in this race. There is nowhere to escape, and there is no team in the world better suited than the Zcash team to take part in this race.

As of May 13, 2026, Cypherpunk holds 314,185.70 ZEC, with an average buy price of $337.86, accounting for approximately 1.88% of the total circulating supply of the Zcash network. Ten days ago, Cypherpunk had at one point an unrealized profit of $100 million; if it had not sold, the current unrealized loss would be $11.89 million.

It is worth noting that the surge in ZEC during this bull market initially stemmed from Silicon Valley’s well-known angel investor Naval Ravikant publicly stating on X that “ZCash can be viewed as an alternative to Bitcoin.” Although that message has not been deleted, Naval has not mentioned ZEC again recently.