ZEC -16.17% in 7 Days as Core Dev Team Quits Amid Governance Dispute

On JAN 8 2026, ZEC rose by 1.61% within 24 hours to reach $425.45, ZEC dropped by 16.17% within 7 days, dropped by 16.3% within 1 month, and dropped by 16.3% within 1 year.

Core Development Team Resigns Amid Governance Tensions

The Zcash (ZEC) ecosystem has experienced a significant internal disruption as the core development team at Electric Coin Company (ECC) announced their mass resignation. The move followed a governance dispute with Bootstrap, the nonprofit overseeing the project’s operations.

According to Josh Swihart, former CEO of ECC, the team’s resignation was a result of governance actions taken by Bootstrap that were deemed misaligned with Zcash’s original mission. Swihart highlighted that the board had made operational changes that rendered the ECC team unable to function effectively. He described the situation as a "constructive discharge," indicating that the team felt forced to leave due to untenable working conditions.

Among those cited as misaligned with Zcash's vision were four prominent Bootstrap board members: Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai. These individuals have been at the center of the governance disagreement, which Swihart claims compromised the integrity and focus of the project’s mission.

Formation of a New Entity to Continue Development

The resigning team is now forming a new company to carry forward the development of privacy-focused financial tools, with Swihart leading the initiative. The new entity will reportedly retain the same engineering talent that previously worked under ECC. Despite the internal conflict, Swihart emphasized that the Zcash protocol itself remains unaffected and will continue to operate without interruption.

However, the broader implications for the project’s development roadmap remain unclear. The loss of the core development team raises concerns about the long-term sustainability of the project and the potential for delays in future upgrades or security enhancements.

Market Reaction Reflects Deep Uncertainty

The news triggered a sharp selloff in ZEC’s price. Over the past 7 days, ZEC has dropped more than 16%, reaching a multi-week low. The token now trades at $425.45 after a 1.61% gain in the last 24 hours, but this bounce has not reversed the broader bearish trend.

Technical indicators support the continuation of downward momentum. ZEC is currently below both its 50-day and 100-day exponential moving averages, with the 100-day EMA providing a key support level at $389. The RSI has settled at 39, indicating strengthening bearish pressure, while the MACD indicator continues to slope downward, reinforcing the negative outlook.

Despite these trends, some analysts suggest the price could stabilize if the new development team successfully communicates a clear path forward. A close above the 50-day EMA at $469 could reinvigorate bullish sentiment.

Governance Dispute Highlights Structural Risks

The underlying issue has been a growing divide between ECC and Bootstrap regarding governance and operational direction. Bootstrap has stated that its actions were driven by the need to ensure compliance with nonprofit legal frameworks, particularly concerning potential investment structures involving the Zcash wallet project, Zashi.

While the nonprofit emphasized that it had not abandoned Zcash’s mission, the dispute has exposed structural vulnerabilities in the project’s governance model. The absence of a clear, unified leadership structure has now created a void in Zcash’s development strategy.

This situation raises important questions about the long-term governance of decentralized projects and the risks associated with over-reliance on centralized development teams. Zcash, once a leading privacy coin, now faces the challenge of regaining stakeholder confidence and securing its position in a competitive market.

Community and Market Outlook Remain Uncertain

The Zcash community is now divided between those who view the resignation as a necessary realignment of priorities and those who see it as a potential threat to the project’s future. While the open-source nature of the protocol ensures its continued operation, the absence of a dedicated core development team introduces risks related to innovation, security, and adaptability.

Analysts project that ZEC’s near-term trajectory will depend heavily on the actions of the new development team and the community’s ability to reach consensus. Until then, the asset is likely to remain volatile, with traders closely watching for signs of stabilization or further deterioration.

In the broader context, Zcash’s current turmoil serves as a case study in the complexities of decentralized governance and the challenges of maintaining alignment between different stakeholders. How the project navigates this transition will be critical in determining its long-term viability.