Nasdaq-listed company Cypherpunk Technologies recently invested an additional $29 million to increase its holdings of Zcash, sparking ripples in the privacy coin sector.

Why is this institutional move worth paying attention to? There are three main perspectives: First, as a compliant publicly listed company, this allocation behavior carries a legal demonstration effect, essentially providing institutional endorsement for privacy technology; second, recent on-chain data for Zcash looks promising—active addresses on the mainnet increased by 17% month-over-month, indicating a rebound in underlying demand; third, positive signals have also emerged from regulatory perspectives, suggesting that policy space for privacy coins may be expanding.

What does the market think about this? Both sides have interesting viewpoints. The optimists believe that institutional funding will push regulatory frameworks to upgrade, potentially freeing privacy coins from long-term suppression; the other side sees ZEC as a technically mature but undervalued representative, which could undergo a revaluation of its worth.

Of course, risks cannot be ignored. The US SEC’s attitude toward privacy coins remains uncertain, serving as an unpredictable factor. Additionally, the market may view this increase as a short-term trading opportunity rather than a genuine strategic allocation, which warrants caution.

Whether privacy coins can break the deadlock through institutional support still depends on subsequent regulatory reactions.