ZEC Price Plummets Following Zcash Development Team’s Resignation – Here’s What Happened

Jakarta, Pintu News – The price of ZEC has experienced a sharp decline due to recent developments in its ecosystem. This comes after the core developers of Zcash resigned from their positions due to governance conflicts.

Zcash Governance Rift Triggers ZEC Price Drop?

Josh Swihart, CEO of Electric Coin Company (ECC) – the main development team behind the Zcash project – announced that all ECC employees are resigning after a disagreement with the Bootstrap board.

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According to Swihart, some board members have gone against the original mission of the company. He mentions that recent governance measures have changed the terms of employment for ECC so that the team can no longer continue their work under those conditions.

Swihart stated that the resignation was actually not a completely voluntary decision. He called it a “constructive dismissal”. The departing developers are now setting up new companies, but still with the same mission.

“We set up a new company, but we’re still the same team with the same mission: to build unstoppable private money,” he says.

Interestingly, he emphasized that this situation did not break the Zcash protocol directly.

However, this internal conflict is reflected in the market. ZEC’s price has fallen by more than 7% in the past 24 hours, indicating investor caution over potential governance issues that could disrupt the project’s development.

Nevertheless, Zcash is still considered one of the best altcoins in terms of privacy. The project uses zero-knowledge proofs technology for secure transactions without revealing personal information. Zcash adopts the Bitcoin model, but with privacy features as an added value for its users.

However, the relevance of privacy in the crypto world is also often debated. Project co-founder Eli Ben-Sasson recalls a past conversation with Strategy’s Michael Saylor, in which the privacy aspect of using Bitcoin was deemed less important.

ZEC prices had previously recorded significant gains before this latest decline.

Adoption continues to grow despite setbacks

Although the Zcash project faces challenges in terms of management, institutional interaction with the project is showing positive developments. In the latter half of 2025, Grayscale filed documents to convert the Zcash Trust into a spot ETF.

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It is worth noting that Arthur Hayes also revealed that this privacy coin has become the second most liquid asset in his family office portfolio. He also remains optimistic about ZEC’s future price projections.

Adoption at the corporate level has accelerated. Reliance Global Group announced that it is consolidating all of its digital assets into ZEC.

Meanwhile, Cypherpunk Technologies has also managed to raise substantial funds to develop a Zcash-based treasury strategy. Last month, the company raised $29 million in ZECs, with the aim of accumulating as many coins as possible in the market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. ZEC Price Drops as Zcash Development Team Resigns Over Governance Dispute. Accessed on January 8, 2026