Privacy Coins Gaining Institutional Attention Again? Bitcoin Mining Pool Operator Foundry Digital Launches Zcash Mining Pool

March 13 News: Bitcoin mining pool operator Foundry Digital announced plans to launch a Zcash mining pool in April, sparking renewed discussions about the prospects of privacy coins. Although privacy-focused cryptocurrencies have experienced significant declines over the past year, some institutions still believe their role in the digital asset ecosystem is being revalued.

Foundry stated that the new mining pool will primarily target institutional miners and large enterprise users, rather than individual miners. CEO Mike Colyer noted that Zcash has gradually developed into an institutional-grade digital asset, but its mining infrastructure has long lacked services tailored for large organizations. By launching this new mining platform, Foundry aims to provide a more stable technical environment for institutional participation in the Zcash network and to promote the growth of its mining power.

Market data shows that Zcash currently ranks around the top 30 in market capitalization among cryptocurrencies, but its price is still down about 93% from its all-time high. Despite this, several crypto industry investors remain optimistic about the long-term value of privacy technology. Charles Chong, Strategic Director at BlockSpaceForce, said that as institutional involvement in blockchain increases, so does the demand for transaction privacy protection, and privacy networks could play an important role in future financial systems.

AngelList founder Naval Ravikant previously stated that Bitcoin is an insurance for the fiat currency system, while Zcash can be seen as a supplement to Bitcoin’s privacy layer. Crypto investor Arthur Hayes has also publicly discussed Zcash’s potential and introduced its use cases to the market. Meanwhile, Winklevoss Capital, founded by Cameron and Tyler Winklevoss, has invested in a Zcash asset management firm. Tyler Winklevoss has pointed out that in the digital age, privacy is gradually becoming a scarce resource.

On the industry development front, Zcash has recently faced some setbacks. In January, several developers from Electric Coin Company left, raising market concerns. However, the project team later announced that they secured approximately $25 million in funding to continue advancing privacy technology development. Investors include Paradigm, Andreessen Horowitz, and the Winklevoss family fund.

Analysts believe that as institutions increasingly explore on-chain financial applications, the demand for transaction privacy and data protection may persist. Foundry’s move to build a Zcash mining pool is also seen by some market observers as a signal that institutions are reassessing the value of privacy blockchains.