The privacy-focused cryptocurrency Zcash (ZEC) has recovered over 56% this week, trading above $470, following a sharp decline triggered by a discovered vulnerability. The Zcash development team announced the upcoming Ironwood upgrade, scheduled for late July, which will patch an integrity flaw in the network’s Orchard shielded pool. This upgrade is designed to allow independent verification of the ZEC supply, addressing concerns about potential counterfeit coins.
The price of ZEC has rallied above $400, recovering from a low near $300. This recovery follows news of an upgrade designed to address a network flaw.
The Ironwood Upgrade is scheduled for activation in late July. It aims to enable users to independently verify the circulating ZEC supply, preventing the minting of counterfeit coins.
The need for the upgrade arose after researcher Taylor Hornby discovered a counterfeiting vulnerability in the Orchard shielded pool. Developers had to deploy a two-stage fix by June 2, but admitted that there was no way to confirm whether attackers had exploited the vulnerability before the fix.
The new upgrade will implement a turnstile mechanism to protect users from hypothetical counterfeit coins. It transitions ZEC to a fresh Ironwood pool, allowing node operators to audit total supply without trusting developers.
Shortly after news of the bug spread, BitMEX co-founder Arthur Hayes sold his entire ZEC holdings. This increased selling pressure, dragging the coin from approximately $578 to near $255.
As developers work to address the issue, ZEC has risen significantly this week. According to market data, the asset was changing hands above $470 at the time of reporting.
