Zclassic Review: Introduction to ZCL Token - Coindoo

Zclassic Review: Introduction to ZCL Token

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Jan 20, 2019
4 min reading time
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What is Zclassic?

Zclassic resulted from a fork of the Zcash blockchain, which was led by Rhett Creighton. The fork removed Zcash’s 20% founder’s reward and its slow start feature. Creighton’s reason for forking was because he saw the latter coin’s 20% founder fee rather unfair, as it would lead to whales controlling the prices, and the slow start feature would generate extreme price hyperinflation.

Zclassic was launched just 4 days after Zcash was released, in November 2016, after Creighton took out 22 lines of code from Zcash, thus resulting in the fork.

Zclassic Analysis and Concerns

Price Fluctuations

Zclassic has experienced some of the wildest price fluctuations the crypto market has ever seen. In January 2018, the coin, which until then hovered around the 8-dollar mark, skyrocketed to 100 USD practically overnight and then continued its meteoric rise to its record high of $ 235. This insane rise was due to the announcement of the Bitcoin Private release, which is a co-fork/fork-merge of Bitcoin and Zclassic.

This prompted many people to buy large amounts of ZCL tokens before the Bitcoin Private airdrop, which was the reason behind its record-breaking surge.

But after the blockchain snapshot was taken in late February, the price crashed just as fast as it rose, resulting in one of the sharpest charts in crypto history.  The early days of March saw ZCL trading at values of 10 USD.

Lack of active development

The removal of a developer fee created a community-driven feeling around the project, but it also led to a lack of unity in the development team.

This issue is better explained in Bitcoin Private’s whitepaper:

“Unfortunately, Zclassic suffered from the same ideas which it derived its greatness: the absence of a founder’s tax led to a lack of active development.”

Simply put, if there are no incentives for developers, Zclassic will not have a very active schedule when it comes to development.

Cryptopia Withdrawals

Due to the increased volume and the massive exchange which took place after the airdrop, many users had their coins stuck in transactions for 2 to 4 days. This was because the network did not have enough miners to handle transaction processing, which was the cause behind the huge traffic bottleneck.

Bittrex Listing

The Bittrex exchange claimed that they would be offering partial support for the fork, but as there was no “fully supported wallet”, no tokens were guaranteed for users. In addition, no Bitcoin balance snapshots would be credited to Bitcoin Private.

Bittrex also cites that the reason for which they froze the Zclassic market for 15 minutes before the snapshot was due to some technical issues which were not found in Zcash but in the Zclassic network.

But as the exchange re-opened the markets, some users noticed some discrepancies. The Bittrex price re-opened at $30, which represented a drop of 70% from the price featured prior to the snapshot.

Even though a decrease in price was expected after the snapshot, it was an issue that trading occurred while the ZCL markets were closed, leading some users to suspect insider trading.

Where to buy Zclassic

ZCL is currently listed by only a handful of exchanges including: Bittrex, Cryptopia, TradeSatoshi, and CoinExchange.

Bittrex has the highest liquidity at the moment, amounting for 94.21% of all ZCL trading volume. CoinExchange is second in liquidity with a trading volume of 3.62%.

The coin can be traded against BTC, DOGE, LTC, ETH, and USDT. As there are very few ZCL coins in circulation, no purchases can be made with fiat currencies.

Where to mine Zclassic

Zclassic can be mined by joining several mining pools, being one of the most mineable Equihash-based coins. The best pools are: minez.zone, suprnova, and zclmine.pro (no fees).

Where to store Zclassic

Zclassic does have a few storage options. Electrum” is a full node wallet which was released at the beginning of 2018, and it is compatible with computers running on Windows, Mac, and Linux systems. Another desktop wallet option for ZCL storage is “Full-Node Wallet”.

Coinomi is a recommended mobile wallet which is compatible with Android devices. The only cold storage option is a paper wallet.

Final Thoughts 

Even though there have been many issues surrounding Zclassic, it still stands true to the original cryptocurrency and blockchain philosophy, unlike other popular peers. Its increased privacy features and mining potential can make it a good investment, but if a strong and cohesive development team is not behind the project, then you should start looking into other coins.

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Feb 20, 2021
* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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