Arthur Hayes stated that after the disclosure of the Orchard Pool vulnerability in Zcash, he sold his entire ZEC position. Although he believes the probability of the vulnerability being exploited is low, the mere possibility of forging ZEC, even if not practically feasible, is sufficient to alter his investment decision as long as it cannot be ruled out cryptographically.
The vulnerability impacts the core selling point.
The key issue in this incident goes beyond the technical level. One of Zcash’s core selling points is privacy protection and the trustworthiness of its monetary supply. Hayes believes that if the market cannot confirm that the total supply of ZEC has not been affected, the project’s foundational value will be undermined.
He mentioned that he had already taken profits on this trade, but what truly prompted his exit was a reassessment of supply integrity, not short-term price fluctuations.
The theoretical risk has affected your position.
Based on disclosed information, the Orchard Pool vulnerability could theoretically allow attackers to generate undetectable forged ZEC. Hayes stated that even if such an event is unlikely and difficult to exploit, it cannot yet be entirely ruled out through cryptographic means.
For privacy coins, this type of uncertainty is more sensitive than ordinary functional vulnerabilities, as external parties already find it harder to independently verify on-chain fund flows and issuance.
Continue to monitor the verification progress.
Hayes said he might still rebuild his position if future validation efforts can restore market confidence in Zcash’s supply integrity.
He also mentioned that he still holds Worldcoin (WLD) and continues to follow developments in the privacy sector.