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Crypto World

Opt-in privacy is failing crypto

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Pavel Nikienkov

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

Privacy has been a recurring narrative in crypto for years. Just weeks after Bitcoin (BTC) launched, Hal Finney pointed out the problem in only his second tweet about it, but the concept didn’t gain wider traction until Monero (XMR) arrived in 2014. Since then, privacy has repeatedly re-emerged as a core promise of decentralised money, especially during moments of regulatory pressure or heightened concerns around financial surveillance. 

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Summary

  • Opt-in privacy fractures networks: When users must “turn on” privacy, anonymity sets shrink and private transactions become more conspicuous — not less.
  • Design, not demand, is the problem: Zcash’s advanced cryptography exists, yet most transactions remain transparent. Narrative momentum hasn’t translated into usage.
  • Privacy must be the default to work: Like security, financial privacy only strengthens when everyone shares it — automatic, universal, and baked into the protocol.

Analysts are positive that crypto’s future will continue to be defined by the privacy narrative. Investor Balaji Srinivasan argued privacy will define the industry’s following eight years; meanwhile, a16z crypto said privacy will be the industry’s most important “moat” in 2026. Indeed, privacy coins have rallied at the end of 2025 and continue to fluctuate into the start of the new year. At their peak, the sector reached a combined market capitalisation surpassing $40 billion, before falling back to roughly $17 billion. 

Zcash (ZEC) was a key driver of that resurgence, rising by more than 1,300% from late September 2025 to its all-time high and remaining up over 600% at current prices, briefly overtaking Monero by total market volume. Yet despite renewed interest and price momentum, actual privacy usage remains strikingly low. Zcash’s shielded pool continues to hold just above 30% of the circulating supply, while roughly two-thirds of transactions remain fully visible on-chain.

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This disconnect exposes a deeper issue. If interest in privacy is rising, why are users not migrating into the very privacy layers designed for that purpose? The answer could just be structural: opt-in privacy is failing crypto.

Opt-in privacy was a design compromise 

In 2013, the pseudonym Nicolas van Saberhagen published the CryptoNote v2 paper, which explicitly framed transaction privacy not as a “nice to have,” but as a core requirement of electronic cash. This paper argued that Bitcoin’s transparency made it pseudo-anonymous at best, and outlined two properties a truly private payment system should satisfy: untraceability and unlinkability.  Andrey Sabelnikov, now co-founder of Zano, worked alongside Nicolas to bring this vision to life, implementing the protocol he had designed. From the start, CryptoNote made privacy the default, baked into every transaction rather than offered as an afterthought.

But as the industry evolved, many projects lost sight of this principle. Rather than pushing the boundaries of privacy-preserving technology, they took the path of least resistance, prioritizing compatibility, performance, and mainstream appeal over user protection. Privacy-preserving cryptography was still expensive and unfamiliar, so newer designs retreated to opt-in models.

This compromise had serious consequences. Privacy became a feature to be toggled on rather than a baseline guarantee. Users who chose the private option effectively marked themselves as having something to hide, while the default transparent experience left the majority exposed. This trade-off may have seemed pragmatic at the time, but it fundamentally betrayed the original vision that CryptoNote had established: that true electronic cash must protect user privacy by design and wasn’t something to bolt on later; it had to be designed into the core transaction model itself.

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The biggest network carrying the original default-privacy philosophy is Monero. Launched in 2014, it adopted the CryptoNote protocol, preserving the principles that Nicolas and Andrey had already established. Instead of asking users to choose between public and private modes, the design assumes that financial transactions should be private by default, and that privacy improves when everyone shares the same protections.

Through this philosophy, privacy does not just become a feature, but a network effect. A privacy system is only as strong as the crowd it can hide in. When privacy is optional, the network fractures into transparent and private activity. The private pool becomes smaller, the anonymity set shrinks, and the privacy model weakens in practice, regardless of how sophisticated the cryptography may be.

The Zcash paradox 

Zcash illustrates the central contradiction facing much of today’s privacy ecosystem. On paper, it offers some of the most advanced privacy technology in crypto, including zero-knowledge proofs that can fully shield transaction details. In practice, however, the majority of network activity remains transparent.

Despite renewed market interest and strong price performance, Zcash’s shielded pool continues to hold just above 30% of the circulating supply, while roughly two-thirds of transactions remain fully visible on-chain. The technology exists. The privacy guarantees are real. Yet most users do not use them.

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This gap is not a failure of cryptography, nor a lack of demand for privacy. It is the predictable outcome of opt-in design. When privacy is presented as a separate mode, something users must consciously enable, it introduces friction, uncertainty, and behavioural drop-off. Many users default to transparent transactions simply because they are easier, faster, or more familiar. Others may be unaware of the distinction altogether.

The consequence is a fragmented network. Public and private transactions coexist, but they do not reinforce one another. Instead, the private pool remains small, limiting the size of the anonymity set and weakening privacy guarantees for those who do opt in. Ironically, using privacy in an opt-in system can make a user more conspicuous rather than less.

Privacy can only work when it is the default

Privacy is not a behaviour users reliably opt into. It functions as a collective property. The more participants who share the same privacy guarantees, the stronger those guarantees become. When privacy is optional, networks fracture into public and private activity, shrinking anonymity sets and weakening protection for those who do opt in. In practice, optional privacy often makes users more conspicuous, not less.

The repeated cycles of privacy coin interest show that demand is not the problem; design is. Systems that rely on users to actively choose privacy struggle to translate narrative momentum into real adoption. If privacy is to become crypto’s defining moat, it must be treated as foundational infrastructure, not a feature toggle. Financial privacy works best when it is automatic, universal, and secure by default.

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Pavel Nikienkov

Pavel Nikienkov

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Pavel Nikienkov is the founder of Zano, a privacy-focused blockchain project designed to enable confidential, peer-to-peer digital transactions. He has spent much of his career working as a project manager and product owner in software development, applying nearly a decade of experience to the strategic direction and operational execution of privacy-oriented blockchain technology.

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Bitcoin Wholecoiner Exchange Flows Drop to 2018 Levels, Tightening Supply

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Bitcoin Wholecoiner Flows on Binance

Bitcoin (BTC) wholecoiner exchange flows have collapsed to levels not seen since 2018, signaling a structural shift in how large holders interact with the market.

The decline coincides with Donald Trump’s latest signal of diplomatic coordination with Chinese President Xi Jinping over the Strait of Hormuz, adding a geopolitical tailwind to an already tightening supply picture.

Wholecoiner Flows Hit Multi-Year Lows

Transactions of at least one full BTC sent to exchanges have fallen sharply. On the Binance exchange, the monthly average now sits around 6,000 BTC, far below the 15,400 BTC recorded in 2021.

Bitcoin Wholecoiner Flows on Binance
Bitcoin Wholecoiner Flows on Binance. Source: DarkFrost on X

At a global level, the picture is more pronounced. Total transfers of at least one BTC to exchanges have dropped to roughly 27,500 BTC, compared to 80,000 BTC at the 2018 peak.

Several factors explain the trend. Rising prices have made holding a full bitcoin increasingly difficult, reducing the pool of wholecoiners over time.

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The expansion of trading platforms and the introduction of spot Bitcoin ETFs in 2024 now allow investors to gain exposure without directly holding BTC.

A growing share of holders also appears to favor long-term strategies, further reducing exchange activity.

“This decline in active wholecoiners on exchanges reflects both reduced selling pressure and a gradual transformation of market structure, with a growing share of supply becoming increasingly illiquid over time,” Darkfost wrote.

Short-Term Holders Take Profits While Shorts Pile In

While long-term holders pull back, short-term holders (STHs) have moved aggressively in the opposite direction.

When BTC tested the $75,000 level, STHs sent more than 65,000 BTC to exchanges within 24 hours, with 61,000 of those transfers locked in profit.

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Analyst Michaël van de Poppe noted that the derivatives market is setting up for a potential squeeze. Funding rates have turned negative while open interest has climbed, meaning traders are overleveraged short as BTC tests resistance for the third time.

“…as long as BTC remains above $72K, I wouldn’t be worried, and I’d rather be looking for longs vs. shorts,” the analyst wrote.

He identified $85,000 to $88,000 as the next resistance zone if $75,000 breaks.

Bitcoin (BTC) Price Performance
Bitcoin (BTC) Price Performance. Source: TradingView

Separately, on-chain researcher Axel Adler Jr. flagged that Bitcoin’s Bull-Bear Index has flipped above zero, clearing the bear zone.

However, he cautioned that network profit and loss sentiment remains underwater, framing the current move as a recovery rather than a new bull regime.

The post Bitcoin Wholecoiner Exchange Flows Drop to 2018 Levels, Tightening Supply appeared first on BeInCrypto.

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AAVE rises 4.3% as trades flat

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9am CoinDesk 20 Update for 2026-04-15: vertical

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 2058.34, up 0.4% (+9.17) since 4 p.m. ET on Tuesday.

Eighteen of 20 assets are trading higher.

9am CoinDesk 20 Update for 2026-04-15: vertical

Leaders: AAVE (+4.3%) and APT (+3.8%).

Laggards: CRO (-0.6%) and SOL (-0.5%).

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The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

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eToro (ETOR) Stock Gains Ground Following $70M Zengo Crypto Wallet Acquisition

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ETOR Stock Card

Key Highlights

  • Trading platform eToro has entered an agreement to purchase crypto wallet company Zengo for approximately $70 million
  • Zengo leverages multi-party computation (MPC) security, eliminating seed phrase requirements
  • The acquisition is designed to integrate self-custody features and decentralized trading capabilities into eToro’s ecosystem
  • ETOR shares have declined more than 1% so far this year and approximately 48% over the trailing twelve months
  • Citizens analyst Devin Ryan reduced his target price to $85 while maintaining a bullish outlook with ~145% potential upside

eToro (ETOR) revealed on Wednesday that it has reached an agreement to purchase Zengo, a crypto wallet service provider, in a transaction valued at approximately $70 million according to industry reports. The company’s shares experienced a modest uptick following the announcement.

Established in 2018, Zengo has amassed over 2 million users worldwide. The platform provides a non-custodial wallet solution, empowering users to maintain direct control over their digital assets without intermediary involvement.

Zengo’s architecture employs multi-party computation (MPC) technology for asset security, eliminating the traditional seed phrase requirement. This approach addresses a persistent challenge in self-custody solutions: the vulnerability associated with lost or compromised recovery keys.


ETOR Stock Card
eToro Group Ltd., ETOR

The acquisition brings established functionality including token swapping capabilities, staking services, and fiat currency onramps that Zengo currently provides. The wallet infrastructure will operate independently from eToro’s regulated offerings, enabling users to engage directly with third-party decentralized protocols.

Speaking on the strategic timing, eToro CEO and co-founder Yoni Assia stated, “As we often say, crypto downtimes are the time to build and this acquisition reflects that long-term approach.”

According to company statements, the purchase will enable eToro to better serve emerging cryptocurrency applications — particularly tokenized real-world assets, decentralized prediction markets, and perpetual futures contracts. The platform intends to weave Zengo’s underlying technology into its core infrastructure moving forward.

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“[The acquisition] will strengthen our ability to support evolving digital asset use cases, including tokenized assets and emerging decentralized trading models,” eToro announced in an official statement.

The Zengo deal follows closely on the heels of eToro’s launch of its proprietary app marketplace, unveiled just one day earlier. This marketplace provides a centralized hub for investors and third-party developers to create and access trading tools, analytics platforms, and other functionality within eToro’s environment. ETOR shares jumped more than 4% following that app store reveal.

ETOR Stock Faces Headwinds Despite Strategic Moves

Notwithstanding recent strategic initiatives, the stock has struggled significantly. ETOR has shed over 1% since the beginning of the year and tumbled roughly 48% over the past twelve-month period.

Last week, Devin Ryan from Citizens adjusted his price target downward to $85 from a higher previous level, though this still represents approximately 145% appreciation potential from current trading levels. Ryan noted that “navigating volatility remains the central challenge” facing capital markets and fintech businesses, adding that cryptocurrency market sentiment “remains impaired” in the near term.

These headwinds were evident in eToro’s fourth-quarter financial performance. Revenue from digital assets plummeted 38% during the quarter that concluded on December 31. However, the company still managed to generate a quarterly profit of $69 million, representing approximately 16% growth compared to the same period a year earlier.

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Analyst Sentiment and Price Projections

Among Wall Street analysts, the consensus rating for ETOR stands at Moderate Buy, reflecting seven Buy recommendations and three Hold ratings issued over the last three months.

The average analyst price target currently sits at $52.80, suggesting roughly 52% upside potential from present price levels.

The Zengo transaction remains subject to standard closing requirements and regulatory conditions. While eToro has not publicly verified the $70 million purchase price, Bloomberg reported the figure based on information from a source familiar with the transaction terms.

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WULF lower by 6% after $900 million capital raise

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WULF lower by 6% after $900 million capital raise

TeraWulf (WULF), a US data center operator focused on bitcoin mining and AI computing, saw its shares drop early Wednesday, after the company announced a $900 million capital raise.

The firm priced 47.4 million shares at $19 each. WULF is down 5.8% to $19.73 in early trading. The underwriter greenshoe option is for an additional 7 million shares.

Alongside other AI infrastructure names, WULF has been on a scorching run, rising more than 50% since late March.

The proceeds are earmarked for funding the construction of a major data center campus in Hawesville, Kentucky, alongside repaying outstanding bridge financing and supporting future expansion.

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Preliminary Q1 results

Alongside the offering, TeraWulf released preliminary first-quarter 2026 results. The company expects revenue between $30 million and $35 million. The balance sheet showed $3.1 billion in cash and $5.8 billion in total debt.

Management highlighted a growing shift toward contracted HPC hosting revenues, which now account for over half of total revenue, positioning the business for more stable, long-term cash flows.

Compass Point analyst Michael Donovan, who has a Buy rating and a $28 price target on WULF, pointed to the shift in mix toward HPC as a positive inflection point for the business, with contracted hosting revenue overtaking bitcoin mining for the first time. He also views the capital raise as a necessary step to unlock the next phase of growth. While acknowledging the dilution, he said the added funding improves visibility into the buildout of the Kentucky site, which he expects to be developed in phases based on customer demand. He added that demand for TeraWulf’s power and hosting capacity remains strong.

Looking ahead, Donovan expects the company’s revenue profile to change meaningfully as HPC scales. He forecasts that contracted hosting will become the dominant driver of revenue over the next two years, reducing reliance on bitcoin price swings and supporting a more predictable earnings stream.

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The shift reflects a broader trend across the industry, as bitcoin miners increasingly pivot toward AI and high-performance computing infrastructure to diversify revenue streams and improve margins.

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EU Adviser Says MiCA 2 Likely as Crypto Market Matures

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Europe, European Union, MiCA, Paris Blockchain Week

A European Commission adviser said the European Union’s landmark MiCA crypto regime is likely to evolve as digital asset markets develop beyond the conditions the law was originally designed to address.

Speaking at the Paris Blockchain Week (PBW) 2026, Peter Kerstens, an adviser on technological innovation, digital transformation and cybersecurity at the European Commission’s financial services department, said the Commission will review the Markets in Crypto-Assets Regulation (MiCA) and launch a public consultation to assess whether the rules are working for market participants and supporting business development.

The remarks suggest EU policymakers are already thinking about how MiCA may need to evolve as the crypto market matures. Kerstens said he could not predict the future, but added that EU financial legislation typically evolves in stages, suggesting it would be “rather unusual” if there were not a “MiCA 2” over time.

MiCA already contains a built-in review clause. The regulation requires the Commission to report on its application by June 30, 2027, and allows it to accompany that review with legislative proposals if needed, according to the Official Journal of the European Union.

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Europe, European Union, MiCA, Paris Blockchain Week
OKX global managing partner Haider Rafique (left) with Peter Kerstens (right) at the PBW 2026. Source: Cointelegraph

MiCA review signals next phase of EU crypto rules

Kerstens said the review is not a response to a broken framework, but part of an effort to ensure rules keep pace with a changing market structure. He said MiCA was designed at a time when crypto markets were dominated by a few large assets and many smaller tokens. 

He said that the ecosystem has since matured, requiring policymakers to reassess whether the framework fits in current conditions. 

Related: EU central bank backs plan for crypto supervision under EU markets watchdog

He also emphasized the role of industry feedback, saying that the Commission would begin with a public consultation with “no taboos.” Kerstens invited market participants to identify where rules should be expanded, adjusted or left unchanged. 

He warned that if regulation does not evolve alongside innovation, markets may develop around existing rules, creating legal uncertainty.  

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Kerstens’ comments come as aspects of MiCA and related frameworks are being tested in practice. On March 24, stablecoin issuer Circle urged the European Commission to adjust parts of its proposed Market Integration Package, including lowering thresholds that limit the use of euro-denominated stablecoins in settlement and expanding access for crypto-asset service providers. 

At the same time, policymakers are debating how MiCA should be implemented. On April 3, officials weighed whether to shift supervision of major crypto firms to the European Securities and Markets Authority (ESMA) amid concerns over inconsistent enforcement

Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO

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