Prediction: This Crypto Plunged 50% Overnight. It Could Soar in 2027.

Source The Motley Fool

Key Points

  • AI is making cybersecurity as well as financial privacy much harder.

  • A serious flaw in Zcash's code was discovered earlier this year, and it tanked the coin's price.

  • The coin's developers rapidly fixed the problem, and are acting to head off future issues in the same vein.

  • 10 stocks we like better than Zcash ›

The privacy coin Zcash (CRYPTO: ZEC) has a pretty good shot at making big gains in 2027, and it might even make some of its investors rich in the process.

It's largely because AI is turning the issue of crypto security into a nightmare that the coin has already experienced and subsequently awoken from. And even after having that nightmare and seeing its price crash this summer (more on that in a moment), it's up by 276% over the last 12 months.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

I predict that next year will see this coin continue to grow rapidly, making many of its holders much wealthier in the process. The argument for Zcash being priced much higher in 2027 starts with a story about a bug that bit its holders quite hard.

An investor sits at a desk and holds a tablet while looking at some papers.

Image source: Getty Images.

Zcash's team fixed a severe counterfeiting bug in five days

One big crypto story of 2026 is that advanced AI models have been finding code flaws (and often exploiting them to steal money) faster than developer teams can patch them.

Zcash faced this fulminating cybersecurity crisis well ahead of its peers. On May 29, a security researcher used Anthropic's Opus 4.8 model to find a problem in Orchard, which at the time was Zcash's main shielded (encrypted) pool. That issue could have allowed attackers to mint an unlimited amount of counterfeit Zcash, and because that counterfeiting would have occurred within the private pool where the network hides the amounts and identities of transactors, it would have been undetectable.

Zcash's developers shipped a fix on June 1, and there's no evidence that the exploit was ever used. Nonetheless, Zcash's price fell more than 50% overnight once the solved problem was disclosed.

Its developers then launched Ironwood, a formally verified privacy pool that lets anyone audit ZEC's supply, on July 28. The entire saga lasted just 60 days.

Since then, Zcash's network has been hardened even further, while other blockchains have seen their ecosystems wither in the face of increasingly sophisticated, AI-equipped attackers stealing funds. In other words, even with the benefit of seeing competitors get hit hard and Zcash rapidly bolstering its own security using AI tools, most other developer teams in the space are still not fully reacting to the risks posed by AI.

That makes Zcash's team look a lot better by comparison, and it means investors can have at least a little confidence that future threats will be dealt with proactively rather than reactively.

Secure and private networks will command a premium moving forward

Cybersecurity concerns stemming from AI are broader than illicit minting of coins.

AI can also be used to match wallet addresses to holders' identities, since most blockchain transactions are public. That's why in March 2026, the asset manager Grayscale, which issues a Zcash exchange-traded fund (ETF), argued that AI surveillance could also make financial privacy, like that offered by Zcash, more valuable in the future.

And as financial data breaches become more common, it'll be even more desirable for investors to hold their funds in a private pool where identifying who owns what is extremely difficult by design. So if AI continues to be an earth-shaking trend for cybersecurity and privacy alike, and it almost certainly will, there's going to be a lot more demand for Zcash, and I expect it to do very well.

Should you buy stock in Zcash right now?

Before you buy stock in Zcash, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Zcash wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $334,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,323,413!*

Now, it’s worth noting Stock Advisor’s total average return is 897% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of October 29, 2026.

Alex Carchidi has positions in Zcash. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nearly Half of $6 Billion Stolen in Binance Hack Frozen as BNB Rebounds Past $700, Targeting $800Binance Narrowly Intercepts $3 Billion; BNB Makes Strong V-Shaped Rebound Past $700, Targeting $800 in the Short Term.On October 30, impacted by a black swan event of a hacker attack, Bin
Author  TradingKey
8 hours ago
Binance Narrowly Intercepts $3 Billion; BNB Makes Strong V-Shaped Rebound Past $700, Targeting $800 in the Short Term.On October 30, impacted by a black swan event of a hacker attack, Bin
placeholder
US GDP grew 3.4% and core PCE held at 3.1% — December is now a hike trade, not a cut tradeUS Q3 GDP rose 3.4%, above the 3.1% estimate, while September headline PCE hit 3.6% and core held at 3.1%. December hike odds are near 90%; inventories, AI capex and energy explain why.
Author  Irene Q.
10 hours ago
US Q3 GDP rose 3.4%, above the 3.1% estimate, while September headline PCE hit 3.6% and core held at 3.1%. December hike odds are near 90%; inventories, AI capex and energy explain why.
placeholder
Nasdaq futures fall 500 points as Amazon and Intel expose the demand side of the AI tradeNasdaq-100 futures fell 500 points after Alphabet -12.6%, Amazon -8% and Intel -23%. Capex is not the problem: Amazon's holiday guide and Intel's weak Q4 guidance show demand is.
Author  Irene Q.
11 hours ago
Nasdaq-100 futures fell 500 points after Alphabet -12.6%, Amazon -8% and Intel -23%. Capex is not the problem: Amazon's holiday guide and Intel's weak Q4 guidance show demand is.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 30, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 30, 2026. Read on for the details.
Author  Mitrade
15 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 30, 2026. Read on for the details.
placeholder
US September PCE Inflation Rises to 3.6%, Gold Drops Below $4,000, Bitcoin Falls Below $77,000On October 30, gold (XAUUSD) and Bitcoin (BTC) continued to face pressure. U.S. September PCE inflation data showed year-over-year increases in both headline and core inflation. Coupled w
Author  TradingKey
15 hours ago
On October 30, gold (XAUUSD) and Bitcoin (BTC) continued to face pressure. U.S. September PCE inflation data showed year-over-year increases in both headline and core inflation. Coupled w
goTop
quote