Zcash Nears a Bug-Free Proof for Its Privacy Pool

Welcome back to The Warmup.

What a week boys!!!

Here’s what we’re watching:

• Market Snapshot

• Zcash Nears a Bug-Free Proof for Its Privacy Pool

• BTC EMA200 Reclaim Setup

• Paradigm Raises $1.2B and Pushes Beyond Crypto

Market: Crypto is leading today, with Ethereum up 3% and Bitcoin gaining 2%, while stocks remain mostly flat and volatility continues to fall.

Zcash Nears a Bug-Free Proof for Its Privacy Pool

What’s going on:

Project Tachyon says it's closing in on a mathematical proof that Ironwood, Zcash's newest shielded pool, contains no counterfeiting flaws.

That matters because a critical vulnerability surfaced in the older Orchard pool back in late May.

One that could have let an attacker mint counterfeit ZEC, with Zcash's own privacy design making it impossible to confirm whether it ever happened.

Founder Zooko Wilcox says the team is "on the verge" of proving the newest pools are clean.

What it means:

The market liked it: ZEC jumped over 12% Tuesday, though it's still near $470 versus $620 before the bug and a $247 low after.

Formal verification is the honest fix for privacy's trust problem, you can't audit what you can't see, so you prove the math instead.

But a proof in progress isn't a proof. Land it and ZEC re-rates. Slip and the discount sticks around.

BTC EMA200 Reclaim Setup

What’s going on:

BTC is now trading around $64K and is testing / slightly reclaiming the 4H EMA200 near $63.7K.

That’s a notable improvement from the prior setup, because price is no longer stuck in the middle, it’s now pressing into a key confirmation level.

Key levels we’re watching:

• EMA200 / key pivot: $63.7K → bulls want to hold above this

• Immediate resistance: $64.2K–$64.5K → recent local highs

• Near-term support: $62K–$62.5K

• Major support: $58K–$59K

Directional Bias: Cautiously bullish

Momentum is improving, but bulls still need to hold above the 4H EMA200 and follow through with strong closes to confirm the breakout.

This is why we do the work before the timeline catches up!

Kaizen called out $CASHCAT ( ▲ 47.48% ) around an $8M market cap.

Just hours later, it exploded past $140M.

That's a 17x move!

Deep research, conviction, and getting positioned before everyone else.

We believed Robinhood Chain was the next major ecosystem.

(Like we did with Ski and Base Chain in the past).

$CASHCAT was the highest-conviction asymmetric bet inside it.

Our members saw the thesis before the breakout.

Paradigm Raises $1.2B and Pushes Beyond Crypto

What’s going on:

Crypto's biggest venture backer just raised a $1.2 billion fund aimed at the "technical frontier".

AI and robotics, not only crypto.

The firm has already written checks outside the sector, backing drone-delivery outfit Zipline at a $7.6B valuation and space-defense startup True Anomaly at $2.2B.

The timing tracks: AI startups pulled roughly 70% of global VC last quarter while crypto deal counts fell and Bitcoin sits down about 30% on the year.

What it means:

Management framed it as abundance, not retreat and the receipts hold up, with Paradigm co-leading Morpho's $175M round and holding positions in Kalshi and other prediction markets.

Still, when the sector's marquee allocator widens its lens, it says something about where returns are perceived to live now.

Crypto and AI aren't zero-sum. But even the true believers are spreading their chips.

• Bitcoin's early July bounce rides thin summer liquidity as half of supply still sits underwater

• Aave Labs rolls out Stable Vaults, offering predictable stablecoin yield aimed at mainstream users

• SEC plans crypto rule changes for exchanges and broker dealers in 2026 regulatory agenda

The tape is ugly and no one's pretending otherwise. Bitcoin is hovering near $62K, down about 30% on the year, ETFs just snapped a 10-day outflow streak after their worst month on record, and fresh Middle East tension has risk assets on the back foot. Sentiment is as thin as the summer liquidity.

But the building never stopped. Stablecoins now have a federal framework in the GENIUS Act, tokenized stocks blew past $2.16 billion onchain, Aave is shipping mainstream yield, and Zcash is on the verge of proving its privacy actually holds. Infrastructure compounds even when the price refuses to.

That gap (grim prices, relentless progress) is uncomfortable to sit in, and even Paradigm is quietly spreading chips toward AI. Fair enough. But the setups that pay off later tend to get built exactly when no one's looking. Zoom out, keep your risk honest, and let the fundamentals do their slow work.

— The Warmup Team

Always do your own research. This newsletter is supplemental material to help educate readers as they make their own decisions. Projects mentioned here are provided to give a potential early-mover advantage.