Why Did ZCL Price Crash and Burn? Analysis

As I watched ZCL start its way to crashing well ahead of the hard fork, I scratched my head and asked “WHY?” I do not and did not hold ZCL in my portfolio so I knew nothing about its history nor purpose. So let me tell you a story. I was watching a few videos about this crazy event. In at least 2 videos, it was said that the reasoning behind ZCL price crash and burn is because of its circulating supply. Well here is my assessment and educational piece on that assumption.

Why Did ZCL Price Crash and Burn?

I want to preface this article with this. I never followed ZCL and quite frankly I was not aware of any of its merits. It never caught my attention. I would never buy a coin without a history at a high price just to get more of it for free.

Some of my facebook followers asked “Queen, do you think I should sell? ZCL is at $30 and I bought in at $90!” My answer was “Never make an emotional decision to force a loss if you believe in the coin and its future value. Do not ever make decisions based upon one day or one week’s events.”  I still hold true to that philosophy.

Nonetheless, here is my response to the youtubers…

You said “…the reason the price went so high is because the circulating supply…” is so high. You are wrong sir. Price is NOT dependent upon circulating supply. Market capitalization = Price * Circulating Supply. What that means is that MARKET CAP is dependent upon Price and Circulating Supply. Price is dependent upon what the market (buyer) is willing to pay for the coin. PERIOD. PRICE is NOT dependent upon Circulating Supply.

I wish people would stop hanging their shingles on circulating price. You got the formula wrong. It is simple mathematics.  When we buy cryptocurrencies, we don’t say “Boy Oh Boy! I am going to buy this coin because of the circulating supply !” That would be a fallacious conclusion.

Bitcoin’s price isn’t high because of circulating supply. It is high because we all buy the heck out of it at any cost. XRP is low because buyers don’t see it valued at much more than about $1-$2 at this time.

My Take on the ZCL Price Crash and Burn is this:

ZCL was about $9.50 at the beginning of January. We need to start being more analytical and ask ourselves “What happened between December 2017 and mid-January 2018 that would make ZCL go from $9.50 up to over $200 in February 2018… particularly when the market was tanking for altcoins and bitcoin?

The ONLY reason for the huge January increase in price was the ANNOUNCEMENT that ZCL would fork sometime in January. So those who wanted those darling free Bitcoin Private forked coins started buying up ZCL like crazy (note… it had nothing to do with circulating supply.). Then when it was announced that the fork would actually happen in February, folks still figured if the price is $100, shucks, it could go up even higher. And yes it did go up up up. The whales and insiders were pumping the price up like crazy and the people fell for it! They bought ZCL as if it was a basket of hotcakes on a cold winter night!

Zclassic ZCL Price Crash and Burn
Zclassic ZCL Price Crash and Burn

VIDEO- Why ZClassic Price Dumped BEFORE and AFTER Hard Fork

Now it was getting closer and closer to fork time. Around February 19, 2018, ZClassic started its decline. The dump was on! Those who were in the know, KNEW that ZCL would dump days BEFORE the day of the Bitcoin Private fork. They could care less about ZCL or Bitcoin Private. They demonstrated that whey they dumped well in advance of the fork and before those chasing Bitcoin Private could get the opportunity to dump their ZCL post-fork. OUCH!

By February 27, ZClassic’s price was down to $74 in no time flat. I started posting in Facebook that I’ve never seen anything like this before! On February 28, ZCL had fallen to around $36! From the chart below, you can tell that there was a dump party happening. …I mean straight down to about $25 PRE-FORK!

At this time, insiders, whales, and those in the know who already had a boatload of ZCL were squeezing all of the profits out of ZCL! They knew the profits from dumping ZCL BEFORE the fork were going to give them a much better payday than waiting to get their hands on some uncertain forked coins.

The masses were dumping ZCL just to minimize their losses.

As I type this, the price of ZCL is back to around where it was before the fork announcement … $7.70


ZClassic ZCL Price Dump and Manipulation
ZClassic ZCL Price Dump and Manipulation


Those on the rich list made MASSIVE profits!

The ‘masses’ end up holding a weak bag of ZCLs hoping that it will return to $90 or higher soon. Maybe it will… Maybe it won’t.

Take a look at the Litecoin Cash fork. It didn’t kill Litecoin. Take a look at the Callisto sidechain coin swap that occurred today. It didn’t kill ETC. I can go back in history at forks and make the same conclusion. Thus I am of the OPINION that there was market manipulation by insiders… more than usual They killed ZCL !

Until Next Time…

Faith Sloan “QueenWiki” 
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Queen Wiki

Faith Sloan better known as "Queen Wiki" or "Crypto Queen" is a cryptocurrency enthusiast and trader. She has been a software engineer for 40 years and builds Decentralized Apps (DApps) on the Ethereum blockchain and plays with Tech toys. When she is not teaching, researching and writing about Cryptocurrencies, she's traveling the world and feeding her eating hobby.