Charles Hoskinson Praises Zcash Then Explains Exactly Why It Is Struggling to Survive

The post Charles Hoskinson Praises Zcash Then Explains Exactly Why It Is Struggling to Survive appeared first on Coinpedia Fintech News

Cardano founder Charles Hoskinson has shared a detailed and balanced take on Zcash, acknowledging its legacy while pointing out the challenges it faces today.

Speaking in a recent discussion highlighted by The Rollup, Hoskinson described Zcash as one of the “OGs of OGs” in crypto, crediting it for pioneering privacy-focused cryptography that is now being used in newer systems like Midnight. He also noted the strong principles behind the project, calling its team “cypherpunks at their core” and emphasizing mutual respect between builders in the space.

However, he pointed out a valid limitation—Zcash is still largely a fixed-function ledger, meaning it lacks programmability compared to modern blockchain platforms. While frameworks like ZEXE aim to address this, newer projects are already moving faster in that direction.

Liquidity Problem & The Dual-Token Fix

The bigger concern？ Liquidity.

As regulations tighten globally, privacy coins with shielded-by_bitdefault features are finding it harder to get listed on exchanges. This has led to declining liquidity rather than growth, making long-term adoption more difficult.

Hoskinson explained that this is not about the quality of the technology, but rather how regulation is shaping market access. Each cycle, the pressure increases, and fully private assets face more resistance.

Heres how it works in simple terms:

• A public token behaves like Bitcoin or ADA, making it easy to list and trade
• A private token is used for computation and privacy

To work around this, he pointed to the dual-token model as a practical solution. In this approach, one public token behaves like Bitcoin or Cardano for exchange listings, while a separate private token handles confidential transactions and computation.

According to him, this structure offers a middle ground, preserving privacy while staying compliant enough for broader adoption.