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The management conflict in Zcash caused the token's price to plummet. Here's why it might not be as serious as it seems.
While the Electric Coin Company development team has left to create a new company, they will still be working on Zcash.
Zcash, a privacy-focused cryptocurrency, dropped the most since December 1 after the development team, responsible for major updates, announced their departure to form a new company.
The team stated they will continue working on Zcash within the new corporate structure after disagreements with Bootstrap, a non-profit organization created to support the network.
The split arose from disagreements over control and the potential privatization of the Zashi wallet, with former ECC leaders accusing the non-profit organization of uncoordinated and overly cautious management.
The development team behind the private coin Zcash
ZEC $434.50 shook the market on Thursday, announcing they are leaving to create a new company after a dispute with Bootstrap, a non-profit organization created to support the network. However, this move is unlikely to significantly alter the position of the second-largest privacy platform, according to Mert Mumtaz, CEO of the Solana API platform — Helius.
Zcash "has lost nothing," Mumtaz stated in an X post. "The ECC team didn't like their board of directors, so they founded exactly the same company with a different name and without a board... meaning they are now free from politics."
The departure caused a 19% drop in Zcash's price, overshadowing an impressive annual growth. In 2025, it increased by 880%. The major competitor Monero XMR $472.87 strengthened after the announcement.