Zcash Drops As Coinbase Confirms Integration And OTC Trading

Coinbase has added support for privacy cryptocurrency Zcash (ZEC).  Customers can now purchase, sell send and receive the altcoin in almost all the jurisdiction that the exchange operates. However, customers in the New York area, as well as the United Kingdom, will have to wait longer before they can trade and transact the cryptocurrency.

Coinbase Zcash Integration

The addition of Zcash comes a month after the U.S cryptocurrency exchange added support for the altcoin on the Coinbase Pro platform. The exchange had noted that trading of the altcoin could only commence once liquidity levels reached the desired levels.

Buoyed by the liquidity levels the exchange has since enhanced support for the privacy altcoin.

“Initially, customers can send ZEC to Coinbase from both transparent and shielded addresses, but only sendoff Coinbase to transparent addresses. In the future, we’ll explore support for sending ZEC to shielded addresses in locations where it complies with local,” read the press release

Integration into a major cryptocurrency exchange would have sent the altcoin skyrocketing in the past; however not anymore. Zcash slumped by 10% even on Coinbase confirming its addition, in line with the bearish stance in the cryptocurrencies Ector.

Cryptocurrencies Sell-Off

Just like other cryptocurrencies, Zcash continues to trade in a downtrend, investors sentiments in the sector having turned bearish in recent weeks. The cryptocurrency has already plunged below the $100 level after skyrocketing to record highs of $800 at the start of the year.

The 80% slump attests to what is happening in the broader cryptocurrency sector. Flagship cryptocurrency Bitcoin (BTC) is down by more than 80%, after plunging below the $4,000 mark from record highs of $20,000 as of the start of the year.

The sell-off in the cryptocurrency sector comes amidst growing concerns about a potential bubble burst in the sector.  Regulatory uncertainty, countries instituting bans as well as stringent regulations have all but continued to fuel the sell-off wave.

Targeting Institutional Investors

Failure of cryptocurrencies to find their way into the mainstream sector has also continued to raise concerns about their long-term prospects. However, platforms are increasingly looking for ways to accelerate mainstream adoption.

Coinbase has joined a growing list of mainstream companies targeting institutional investors. The exchange has consequently unveiled an over-the-counter trading platform. The platform seeks to entice institutional investors to invest in the sector at a time of growing demand for OTC crypto trading. Goldman Sachs is one of the mainstream companies that is also targeting institutional investors about crypto investments.