$ZEC downside risks escalate as core development quits amid internal disagreements.

Zcash (ZEC) is trading down as volatility reaps through the cryptocurrency market on Thursday. The privacy-focused token is down nearly 14%, marking the largest intraday loss since December 1.

The decline can largely be attributed to internal leadership wrangles between Bootstrap, a nonprofit organisation created to oversee the operations of the Electric Coin Company (ECC), a major development company within the Zcash crypto network.

Zcash core development team resigns:

Developers under ECC have unanimously resigned following a dispute with Bootstrap’s board members. Josh Swihart, ECC’s CEO, highlighted via X that the majority of the board members have, over the past few weeks, “moved into clear misalignment with the mission of Zcash.”

Swihart further stated that the entire core ECC core development team had “left after being constructively discharged by ZCAM.” He cited changes to the terms of employment that made it impossible for the ECC team to perform its duties effectively.

The ECC team announced through Swihart that it was forming a new company that will retain the same team and align with the mission of building privacy-focused money.$