Market stabilizes as Zcash blockchain remains fully operational, while Monero gains attention amid turmoil.
Zcash (ZEC) stabilized on Friday following a dramatic drop triggered by news that the core development team had left the protocol.
Friday morning, European time, ZEC traded at $433, up more than 13% after a steep 21% plunge on Thursday that wiped out $1.38 billion in market capitalization.
The drop came after Zcash’s entire development team at Electric Coin Company (ECC), the main group building the Zcash protocol, resigned following a governance dispute with the board of nonprofit Bootstrap, which oversees ECC as a 501(c)(3).
Former ECC CEO Josh Swihart publicly stated that board actions by Bootstrap members altered employment conditions so severely that the team was effectively “constructively discharged” — forced to leave because they could no longer work “effectively and with integrity.”
ECC’s Position and Next Steps
The departing developers say they are forming a new independent company to continue work on Zcash’s mission of building privacy‑focused digital money. They emphasize that they remain dedicated to Zcash’s core goals.
Josh Swihart revealed a new for-profit company, CashZ, with the same team that developed the Zashi wallet and contributed to Zcash’s protocol. The company plans to release a new Zcash wallet, called CashZ, based on the existing Zashi code.
Technically, Zcash’s blockchain remains intact and fully functional. No forks or protocol disruptions have been reported as a direct result of the departures.
The decade-old privacy coin saw its market cap surge roughly 15-fold this autumn, driven by renewed investor interest in privacy coins, speculation around protocol upgrades, and increased adoption of Zcash for privacy-focused transactions.
In response to the Zcash (ZEC) turmoil, privacy coin Monero (XMR) is drawing attention as the leading privacy-focused cryptocurrency, rising as much as 10% since January 8.
Why This Matters
The episode underscores how governance disputes and developer departures can trigger extreme price volatility in crypto, even when the underlying blockchain remains fully operational.
Check out DailyCoin’s popular crypto news today:
TRU Token Collapses 100% After Truebit Protocol Exploit
WIF Price Pulls Back After 70% Rally, Arriving At ‘Make-or-Break’ Zone
