Developers behind the privacy-focused cryptocurrency Zcash have revealed they are already building a new wallet, less than a day after their high-profile departure from Electric Coin Company (ECC).
Late Thursday, former ECC CEO Josh Swihart said the team that originally launched Zcash and developed the Zashi wallet is now working on a new Zcash wallet built on the same Zashi codebase. The wallet, currently codenamed cashZ, is expected to launch within the next few weeks.
Swihart noted that existing Zashi users will be able to migrate to the new wallet seamlessly, though additional details about its features have not yet been disclosed.
The announcement follows the team’s abrupt exit from ECC amid disagreements over nonprofit compliance and governance issues. Swihart sought to reassure users, emphasizing that the entire team that previously worked at Electric Coin Company and built Zashi remains fully committed to full-stack Zcash development.
“We aren’t launching any new coins, we’re just scaling Zcash. To do that, it required that we leave and start a new Zcash-focused company.”
Zcash developers say their decision to strike out on their own is rooted in a desire to return the project to its cypherpunk origins.
In a statement published on the project’s website, Josh Swihart outlined several reasons for forming a new company. Chief among them, he said, is the belief that Zcash is fundamentally cypherpunk and requires an organization that is built around that ethos.
Swihart also pointed to the need for stronger alignment around privacy, arguing that financial privacy in crypto should be as normal as it is with physical cash. Defending those principles, he said, demands an organization that is bold, agile, and able to operate without heavy bureaucratic constraints.
He contrasted the priorities of different organizational structures, noting that nonprofits tend to emphasize rule compliance, while startups are better suited to rapid innovation and experimentation.
“Anyone who’s been in crypto more than a few years knows that the entanglement of nonprofit foundations and tech startups has been the cause of endless drama.”
Swihart added a third reason for the move, saying Zcash has undergone a revival over the past two years and has outgrown its early, small-scale phase. To compete with major blockchain networks such as Bitcoin, Ethereum, and Solana, he argued, the project now requires an organizational structure capable of scaling quickly.
ZEC sees modest rebound
Zcash’s native token, ZEC, dropped more than 21% following the upheaval, slipping below $400 on Thursday. The asset staged a modest rebound in early Friday trading after the announcement, climbing back to around $430.
Despite the bounce, ZEC remains sharply lower over the long term. It is still down roughly 86% from its 2016 all-time high of $3,191 and about 38% below its 2025 peak of just under $700, according to CoinGecko.
