Zcash is facing renewed uncertainty following a major shake-up within its development ecosystem. The cryptocurrency’s price slipped following reports that members of the project’s development team resigned amid an internal governance dispute, raising fresh questions about its leadership, funding, and the project’s long-term direction.
Zcash Development Team Steps Down Amid Governance Tensions
In a recent X post, Josh Swihart, the CEO of ECC, the development team behind Zcash, announced that all ECC employees have resigned after a disagreement with the Bootstrap board. Bootstrap is a non-profit organisation that governs the ECC, and its board members include Zaki Manian, Christina Garman, Alan Fairless, and Michele Lai.
According to Swihart, these four individuals, referred to as ZCAM, have lost sight of the Zcash mission and are moving in the opposite direction. Furthermore, the ZCAM restructured the teams’ working terms, making it impossible for them to perform their duties effectively; thus, the resignation was deemed constructive rather than voluntary.
Meanwhile, Swihart included that the team’s departure and disagreement with the board has in no way affected the ZCash protocol. However, they will be starting a new company that aligns with the Zcash protocol’s mission, which is to build unstoppable private money.
Adoption Despite Governance Challenges
The Zcash community has responded with a mix of concern and cautious optimism. Some community members see the resignations as a setback that could delay upgrades or weaken its competitive position among privacy coins. Others argue that the shake-up could open the door for governance reforms and a more community-driven future.
However, it is worth noting that despite the governance challenges, Zcash has continued to see increased institutional interest and adoption. In Q4 of 2025, asset manager Grayscale filed for approval to convert the Zcash trust to a spot ETF. Furthermore, Zcash treasury firm Cypherpunk Technologies has remained committed to its goal of acquiring 5% of the ZEC circulating supply.
In a recent disclosure, the firm announced that it had made a fresh ZEC purchase worth $29 million, bringing the treasury’s total holdings to over 290,000 tokens, which represents 1.76% of the token’s supply. Furthermore, Maelstrom Fund CEO Arthur Hayes continues to advocate for privacy coins, with a focus on Zcash. Currently, ZEC is the second most liquid asset in his family office’s portfolio.
ZEC Price Action Reflects Market Uncertainty
Unsurprisingly, the governance drama has spilled over into ZEC’s price action. Following news of the resignations, ZEC saw a 7% dip as traders reacted to the uncertainty surrounding the project’s future. Short-term selling pressure suggests that some investors are adopting a wait-and-see approach. According to CoinMarketCap, ZEC has experienced a further decline in value, dropping by over 16% to $407.
From a technical perspective, ZEC’s decline reflects a broader sensitivity to project-specific risk and is also influenced by the market-wide downtrend. If uncertainty persists, ZEC could continue to face volatility, especially if confidence among developers and long-term holders weakens.
The CoinRemark Team
