BitMEX Founder Arthur Hayes Made Large Sales of This Altcoin Due to the Orchard Pool Bug!

Arthur Hayes, a well-known figure in the cryptocurrency sector, announced on the social media platform X that he has sold all of his Zcash holdings. Hayes stated that the “Holy Trinity” of $HYPE, ZEC, and $NEAR, which he previously cited as the cornerstones of his investment thesis, has now come to an end.

According to Hayes, the primary reason for selling was the “Orchard Pool” vulnerability discovered on the Zcash network. The experienced investor stated that he believed the likelihood of this security flaw leading to unauthorized token production was extremely low. However, the inability to prove that this possibility was completely cryptographically impossible led him to close his position.

Hayes emphasized that the core narrative presented to investors by privacy-focused cryptocurrency projects requires impeccable security. According to him, a project aiming to protect privacy against data collection by AI systems, government agencies, and large tech companies must leave no room for doubt regarding security. Therefore, he argued that even a theoretical security risk weakens the investment argument.

Zcash has long been among the most prominent privacy-focused cryptocurrency projects, known for its advanced cryptographic technologies designed to conceal user transactions. However, the recent Orchard Pool issue has reignited investor concerns about the network’s security.

Hayes recently announced that he had sold all of his $HYPE and $NEAR tokens. He stated that he would detail the reasons for these sales in a comprehensive article to be published next Tuesday, and confirmed that while he closed some positions in his portfolio, he was holding onto his Worldcoin investments.

Market analysts believe that Hayes’s consecutive sell decisions are being closely watched, particularly by individual investors, and that these moves could affect market perception of certain altcoin projects.

This is not investment advice.