- Top privacy tokens like Zcash, Dash, and Monero are soaring this week.
- Iran has started asking oil tankers to pay $1 per barrel to cross the Strait of Hormuz.
- Some crypto analysts recommend using privacy tokens that cannot be tracked.
Privacy tokens are soaring this week, with Zcash, Dash, and Monero being the top gainers. Zcash price jumped to $385 on Friday morning, its highest level since January 28. It has jumped by 93% from its lowest level in March.
Similarly, Dash price soared to $38.8, its highest level since February 15, while Monero rose to $345 from the year-to-date low of $276. This rebound is mostly because of the ongoing crypto market rally, which has continued since the US and Iran announced a ceasefire.
The rally is rising as investors buy the dip in privacy tokens, which surged late last year and then resumed the downward trend this year as the momentum faded. Crypto investors are hoping that a similar rally will happen.
Zcash, Dash, and Monero are Soaring as Iran Seeks Crypto for Strait of Hormuz
Another likely reason is a report by the Financial Times that Iran is considering asking oil shipping companies to pay for tolls at the Strait of Hormuz using cryptocurrencies and the Chinese yuan. The country is seeking for $1 per barrel that passes by the Strait.
FT noted that the country has opted for Bitcoin to circumvent US sanctions since cryptocurrencies are hard to track than fiat currencies. The challenge for using Bitcoin is that its transactions appear on the public ledger, and governments have tracked these transactions in the past.
Therefore, some crypto analysts recommend using privacy tokens like Zcash, Monero, or Dash. Zcash uses a technology that allows shielded addresses, which are hard to track.
Similarly, Monero uses stealth addresses for receiver privacy and ring signatures for sender privacy. It also uses Ring Confidential Transactions, which hides transaction amount using Pedersen commitments.
To be clear, it is not clear whether Iran will opt for these privacy coins as their prices are often volatile and some of them tend to have low volume. Also, it is unclear whether Iran will continue to charge these tolls in perpetuity.
In a Truth Social post, President Donald Trump warned Iran against taking tolls at the Strait of Hormuz. This post came as companies in the oil and gas industry complained to Trump about having to pay tolls.
According to Politico, these companies are wondering why they are paying tolls yet the Trump administration has insisted that it won the war. It is still unclear whether there is anything that the Trump administration can do to end these tolls.
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