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ZEC Drops 7% as Zcash Team Departs Following Governance Conflict
Key Insights
Zcash’s core development team resigned following a dispute with the Bootstrap board over altered employment terms.
The sudden exit of ECC’s team led to a sharp 7% drop in ZEC’s price amid investor uncertainty.
Despite setbacks, institutional interest in ZEC continues with ETF filings and treasury consolidation moves.
The Zcash ecosystem has been disrupted after the core development team behind the privacy-focused cryptocurrency stepped down due to internal governance disagreements. The departure follows rising tension between Electric Coin Company (ECC) and the board of Bootstrap, the organization overseeing Zcash’s development.
Josh Swihart, CEO of Electric Coin Company, confirmed the resignation of all employees at ECC. The move was in response to recent decisions by the Bootstrap board that changed employment conditions, which the team deemed untenable. Swihart described the resignations as “constructive dismissals,” noting that the departures were not by choice.
New Company to Continue Development Mission
Despite the separation, the ECC team plans to continue working on Zcash’s core mission through a new company. Swihart emphasized that the team remains committed to building secure, private digital currency. He also clarified that the protocol itself remains unaffected by the organizational fallout.
Source: CoinMarketCap
The sudden shift in Zcash’s development leadership sparked a drop in investor confidence. The ZEC price declined more than 7% within 24 hours, reflecting market concerns over the stability of the project. Governance uncertainties appear to have directly influenced investor sentiment.
Institutional Interest in ZEC Remains Active
While the internal conflict has rattled the market, institutional interest in Zcash has continued to expand. In late 2025, Grayscale filed paperwork for the conversion of its Zcash Trust into a spot ETF. The move indicated confidence in the asset’s long-term potential.
Former BitMEX CEO Arthur Hayes confirmed that ZEC had become the second most liquid asset in his family office portfolio. His positive outlook remains unchanged despite the project’s internal challenges. Additionally, Reliance Global Group announced the consolidation of its digital asset holdings into ZEC.
Treasury Efforts Continue Despite Setback
Cypherpunk Technologies has also shown support for Zcash. The company recently raised $29 million worth of ZEC to support a treasury accumulation strategy aimed at strengthening the coin’s market position. The fundraising effort highlights confidence in ZEC’s relevance within the privacy coin segment.
The post ZEC Drops 7% as Zcash Team Departs Following Governance Conflict appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
Zcash’s core development team resigned following a dispute with the Bootstrap board over altered employment terms.
The sudden exit of ECC’s team led to a sharp 7% drop in ZEC’s price amid investor uncertainty.
Despite setbacks, institutional interest in ZEC continues with ETF filings and treasury consolidation moves.
The Zcash ecosystem has been disrupted after the core development team behind the privacy-focused cryptocurrency stepped down due to internal governance disagreements. The departure follows rising tension between Electric Coin Company (ECC) and the board of Bootstrap, the organization overseeing Zcash’s development.
Josh Swihart, CEO of Electric Coin Company, confirmed the resignation of all employees at ECC. The move was in response to recent decisions by the Bootstrap board that changed employment conditions, which the team deemed untenable. Swihart described the resignations as “constructive dismissals,” noting that the departures were not by choice.
New Company to Continue Development Mission
Despite the separation, the ECC team plans to continue working on Zcash’s core mission through a new company. Swihart emphasized that the team remains committed to building secure, private digital currency. He also clarified that the protocol itself remains unaffected by the organizational fallout.
Source: CoinMarketCap
The sudden shift in Zcash’s development leadership sparked a drop in investor confidence. The ZEC price declined more than 7% within 24 hours, reflecting market concerns over the stability of the project. Governance uncertainties appear to have directly influenced investor sentiment.
Institutional Interest in ZEC Remains Active
While the internal conflict has rattled the market, institutional interest in Zcash has continued to expand. In late 2025, Grayscale filed paperwork for the conversion of its Zcash Trust into a spot ETF. The move indicated confidence in the asset’s long-term potential.
Former BitMEX CEO Arthur Hayes confirmed that ZEC had become the second most liquid asset in his family office portfolio. His positive outlook remains unchanged despite the project’s internal challenges. Additionally, Reliance Global Group announced the consolidation of its digital asset holdings into ZEC.
Treasury Efforts Continue Despite Setback
Cypherpunk Technologies has also shown support for Zcash. The company recently raised $29 million worth of ZEC to support a treasury accumulation strategy aimed at strengthening the coin’s market position. The fundraising effort highlights confidence in ZEC’s relevance within the privacy coin segment.
The post ZEC Drops 7% as Zcash Team Departs Following Governance Conflict appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
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