Key Takeaways:
On June 5, ETH plunged 10% to $1,545, leading a market-wide sell-off that erased $468M in leverage.ZEC crashed over 40% after an AI tool found a security flaw, ceding its top privacy coin spot to Monero.Fhenix founder Guy Zyskind expects the ZEC exploit to shift industry focus toward FHE privacy tech.ZEC was perhaps the biggest loser among recent high-flying tokens, tumbling from just under $540 to an intraday low of $264.80—a decrease of over 40% in 24 hours. Unlike its peers, however, ZEC’s slide was linked to the revelation of a vulnerability in the Orchard shielded pool, which had been present since 2022. According to security expert Taylor Hornby, the vulnerability enabled the counterfeiting of ZEC tokens.
“One of the nice properties of FHE compared to Zcash/ZK is that you can actually compute in the encrypted domain. This means that you could, in theory, encrypt the sum total of everyone’s coin balances and ensure that it doesn’t grow or inflate given some bug in the software. With ZK, you either reveal that to everyone or you hide it. Zcash chose the latter for extra privacy at the cost of users not being able to trust that the total supply remains sound,” Zyskind said.
