ZEC is facing intense selling pressure after a sudden loss of confidence sent the privacy-focused cryptocurrency down more than 17%. The sharp decline has left two traders staring at a combined unrealized loss of approximately $2.2 million, according to market data.
The downturn comes amid news that members of the development team behind Zcash have stepped away, triggering concerns over governance and the project’s future direction.
Large Traders Face $2.2 Million Loss as ZEC Sinks
Blockchain tracker Lookonchain flagged the transaction of two wallets identified as 0x6ef9 and 0x089f. According to the onchain sleuth this wallet opened a 1x leveraged long on 27,985 ZEC worth $11.1 million on January 7 2025. The analytics platform highlighted that wallet ‘0x089f’ contributed the largest portion of the leveraged long position, trading 15,390.8 ZEC, while wallet ‘0x6ef9’ added 12,594.3 ZEC.
However, a few hours later, ZEC saw intense volatility triggered by the news that the development team behind the project had resigned due to governance issues. Therefore, the two wallets currently sit on an unrealised loss of $2.2 million, with wallet 0x089f claiming $1.2 million of the losses.
Development Team Departure Triggers Market Sell-Off
Market participants largely attributed the sudden downturn to the recent resignation of staff from the Electric Coin Company (ECC), the platform responsible for much of Zcash’s core development. However, critics have seized the opportunity to allege that the core team initiated a rug pull before resigning.
However, a Kalshi ambassador, identified as StarPlatinum, has stated in an X post that on-chain data does not support the insider rug claim. According to the expert, the Zcash network is still running smoothly, and there has been no unusual activity after the team’s ‘constructive resignation.’
Thus, the downturn and sell-off could likely be the action of an anonymous whale, rather than an internally coordinated dumping. However, the team’s departures have raised red flags about how the network will evolve moving forward.
Zcash Price Action Signals Heightened Risk
ZEC is currently trading sharply lower after posting a daily decline of over 17%, erasing recent gains and pushing the token towards critical support levels. Technical indicators continue to reflect bearish momentum, with sellers maintaining control in the short term.
If Zcash fails to hold current support, analysts warn that further downside could follow as stop-loss orders are triggered. On the other hand, any meaningful recovery will likely depend on reassurance around the project’s development roadmap and governance structure. Meanwhile, according to CoinMarketCap data, ZEC currently trades around the $406 region and ranks 17th in the crypto market.
The CoinRemark Team
