Arthur Hayes’ ‘Withdraw and Shield’ Zcash War Cry Could Make ZEC’s Next Move Its Wildest Yet

Why It Matters

The simultaneous supply cut and shift of coins into low‑turnover shielded pools could compress ZEC's effective float, amplifying price moves and widening spreads, while regulatory scrutiny may further constrain liquidity on major venues.

Summary

Arthur Hayes, former BitMEX CEO, urged Zcash holders to withdraw their ZEC from centralized exchanges and move it into shielded addresses, branding the coin as his second‑largest position after Bitcoin. The call comes as Zcash undergoes its third halving this month, cutting block subsidies from 3.125 to 1.5625 ZEC and halving daily issuance to roughly 1,800 coins. Shielded pools already contain about 27‑30% of circulating supply and are expected to rise, tightening the tradable float and pressuring market depth, slippage and perpetual‑contract basis. At the same time, heightened EU AML regulations and FATF travel‑rule enforcement increase delisting risk for privacy‑focused assets, adding a regulatory dimension to ZEC’s market dynamics.