ZEC PLUNGES AMID GOVERNANCE DISPUTE AND DEVELOPER EXODUS

• Zcash's core development team, Electric Coin Company (ECC), resigned en masse due to governance disputes with the board, which reportedly hindered their ability to advance Zcash's privacy mission.
• The Zcash development team announced the launch of a new wallet, cashZ, as part of their new company. This follows their exit from Electric Coin Company over governance disputes.
• Zcash's price dropped over 20% following the departure of its core development team, triggering bearish technical indicators and forecasts of further declines. The price fell below key support levels, with technical analysis suggesting a potential further decline of 40–50% toward the $200–$300 range.

The Zcash development team left the Electric Coin Company to form a new for-profit entity after a governance dispute. This move aims to accelerate development and reduce bureaucratic constraints while continuing work on the Zcash protocol. The new company is focused on and reducing internal political choke points.

The recent Zcash development team exit from the nonprofit is not a collapse but a corporate restructuring. Bulls argue that a lean, profit-aligned company could develop consumer-grade financial products faster. The Zcash protocol remains intact, and the confusion stems from conflating governance changes with protocol abandonment.

Zcash’s price dropped over 20% following the departure of its core development team, triggering bearish technical indicators and forecasts of further declines. Zcash fell over 20% to about $381 following the sudden exit of its core development team from Electric Coin Company (ECC). The team cited governance issues and announced the formation of a new company to continue their mission, which did not reassure investors.

Zcash's core development team, Electric Coin Company (ECC), resigned en masse due to governance issues with the board, which reportedly hindered their ability to advance Zcash's privacy mission. The team plans to form a new entity to continue development. The team has since formed a new company to continue working on privacy-focused technologies, but the split has triggered uncertainty among investors.

Will Zcash's New Company Structure Improve Development?

The Zcash development team has announced the launch of a new wallet called cashZ, following their exit from Electric Coin Company (ECC) over governance and nonprofit structure disagreements. The team emphasized a return to cypherpunk principles and a focus on scaling Zcash to compete with major cryptocurrencies.

Josh Swihart, former CEO of ECC, stated the team was constructively discharged due to governance disagreements with Bootstrap's board. The team will continue their mission of building private money under a new structure. Zcash's decentralized governance model means that upgrades require community approval.

The ECC team transitioned to a new structure to continue supporting Zcash without the constraints of Bootstrap's nonprofit corporate framework. This change aims to unlock potential for Zcash's development and align the team's mission with long-term goals.

What Are the Implications for Zcash Investors?

The Zcash original development team, led by Josh Swihart, is launching a new wallet with pre-registration available. The team has stated that it will continue to focus on Zcash development under a new corporate structure.

Zcash's price dropped sharply after the Electric Coin Company's team left, citing constructive discharge and governance disagreements. The team plans to form a new company to continue their mission, but uncertainty remains for investors.

Zcash's governance crisis in early 2026 exposed structural flaws in its governance model as the ECC team left amid board disputes, triggering an 11% price drop. The incident underscores governance instability risks in privacy-centric cryptocurrencies.

What Is the Market's Reaction to Zcash's Governance Crisis?

Zcash’s price dropped over 20% following the departure of its core development team, triggering bearish technical indicators and forecasts of further declines. Zcash is now breaking out of a bear flag pattern, and analysts point to potential support at the $275–$300 zone, aligning with the 200-day EMA.

Zcash experienced a significant price decline after the Electric Coin Company's (ECC) development team left to form a new entity. Zcash's price has dropped 18.2% in 24 hours and 24% over the past 7 days. Market uncertainty persists as the new team hasn't disclosed project details yet.

Zcash's price fell sharply following the announcement, with on-chain data showing a surge in exchange inflows and a 7% increase in ZEC balances on exchanges within 24 hours. This indicates heightened selling pressure and a shift in sentiment.