Institutional Bet or Binance Blunder? Zcash Surges as Altcoin Collapses 97%

Grayscale Zcash Trust (ZCSH) and an unnamed altcoin (AB) experienced extreme price volatility within 24 hours, with ZEC surging 35% and AB plummeting 97%. The Zcash rally, driven by institutional demand and strategic partnerships, contrasted sharply with AB's abrupt collapse linked to Binance's Alpha program.

Zcash (ZEC) saw a 35% 24-hour increase and a 260% monthly surge, reaching $180 as of October 9, 2025, according to market data. This followed Grayscale's launch of the Zcash Trust, which provides institutional access to ZEC via a security vehicle. The fund's total assets under management stood at $16.1 million, with a 1.2% 24-hour net asset value (NAV) increase. Analysts attributed the rally to Grayscale's potential ETF application, endorsements from figures like venture capitalist Naval Ravikant, and decentralized cross-chain integrations via ThorSwap. ZEC's price breakout from a multi-year downtrend and a 140% weekly gain highlighted renewed institutional interest in privacy-focused assets.

Conversely, AB, listed on Binance Alpha, crashed 97% within two minutes on October 9. The token, part of Binance's Alpha watchlist, initially spiked after the exchange's Telegram group highlighted it but collapsed when Binance disavowed the post as "false." Traders reported significant losses, with one user losing $102,000 in 12 minutes. Binance later revised its Alpha Airdrops program to prevent manipulation, citing liquidity issues and bot activity in tokens like ZKJ and KOGE.

The Zcash surge underscored growing demand for privacy-centric cryptocurrencies amid regulatory scrutiny. Grayscale's Zcash Trust, which charges a 2.5% expense ratio, allows investors to gain exposure to ZEC without direct custody. Meanwhile, Zcash's ecosystem reported $9.5 million in ZEC swapped via its Zashi wallet, reflecting improved usability. However, analysts warned of regulatory risks, as privacy coins face heightened oversight in jurisdictions like the UAE, where Binance FZE and BitOasis delisted ZEC earlier in 2025.

Binance's revised Alpha program now excludes mutual trades between tokens and enforces a two-phase airdrop model to curb abuse. The exchange cited $8 million in profits from bots exploiting ZKJ and KOGE prior to their collapses. These measures aim to restore credibility but highlight the volatile nature of early-stage tokens on the platform.

Zcash's price trajectory suggests a potential inflection point for privacy coins. Electric Coin Co. CEO Josh Swihart noted a "perfect storm" of macro conditions, institutional access, and viral adoption. Technical indicators show ZEC approaching $164 as a key resistance level, with some analysts projecting a $500 target if momentum holds. However, overbought conditions (RSI at 83) and regulatory uncertainty remain risks.

Source: [1] Grayscale Zcash Trust (https://www.grayscale.com/funds/grayscale-zcash-trust)

[2] Zcash Price Surge Analysis (https://en.bitcoinsistemi.com/two-altcoins-experienced-massive-and-sudden-pump-dumps-in-the-last-24-hours-one-is-behind-grayscale/)