One of the greatest risks of investing in a coin prior to a hard fork is that it is always a possibility of a dump after the event. That’s exactly what happened to ZClassic (ZCL) after the bitcoin private hard fork. However, the ZClassic hard fork also came at a time when the entire market was in a downturn and this made the situation worse. That’s why ZClassic dropped from over $100 to under $10. Yap, you read that right! ZClassic lost more than 90% of its value. But after many days in the red and many dismissing it as a dead coin, ZClassic is back. In the last few days, it has pumped by more than 100%. Is it headed back to its previous highs? The answer is yes! Here is why.
For starters, the reason why ZClassic dropped so hard was nothing to do with its fundamentals. That drop was triggered by profit taking after the hard fork, profit taking that happened when the overall market was losing momentum. Now that volumes are back, and most cryptos are gaining, investors are looking for bargains, and ZClassic is a massive bargain right now. From a high of over $100 to lows of under $10, everyone would want to jump in, before it rebounds. It is this fear of missing out that has pumped ZClassic in the last few days. As more investors jump in, trying to make a kill on the upside, ZClassic will continue to rise, and could drive push back to $100 and higher.
But it’s not just FOMO that will push ZClassic (ZCL) back to over $100. It also has some strong fundamentals. One of its strongest points is that it is one of the better known privacy coins in the market. We are entering a phase in crypto where government regulation is becoming a reality. Several governments have announced that they will be introducing regulations to control this market.
Even the G20 (a conglomeration of the richest countries on earth) concluded some time back that regulations will be coming up by June. This makes the next few months an interesting time for privacy coins as investors try to move their investments away from the government eyes. One coin that stands to benefit immensely is ZClassic. That’s because it has some outstanding privacy features that allow it to be used in moving taxes around anonymously.
Besides, it is a well-known coin that has been around for some time now. That will serve to push volumes towards it, as privacy takes center stage as an important part to cryptocurrencies.
With all these factors coming into play, it is not hard to see why this crypto is headed back to over $100 in the near future. Investors who get in now when it is still trading at under $20 stand to reap big. ZClassic (ZCL) could surprise many by outperforming the entire market this year. If it does, it will be the perfect exemplification of how financial markets work. They reward long-term investors over day traders.