ZEC Falls 14% After Entire Zcash Core Team Resigns

Zcash (ZEC) experienced a sharp decline of over 14% on Thursday, falling to around $384, according to CoinGecko data. It has since recovered and is trading at approximately $436 at the time of writing. The cryptocurrency’s market capitalization now stands at roughly $7.2 billion, with a circulating supply of about 16.5 million coins.

The drop followed the exit of the entire Zcash core team at Electric Coin Company (ECC), the organization behind the Zcash protocol and the Zashi app. Former ECC CEO Josh Swihart said the team left after being “constructively discharged” by the Bootstrap board, a 501(c)(3) nonprofit that oversees Zcash.

Team Departure and Organizational Dispute

Swihart explained that changes in employment terms made it impossible for the team to work effectively while maintaining integrity. He added that the majority of Bootstrap board members had moved out of alignment with Zcash’s mission. This group included Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai. Following these disagreements, the team decided to leave.

Over the past few weeks, it’s become clear that the majority of Bootstrap board members (a 501(c)(3) nonprofit created to support Zcash by governing the Electric Coin Company), specifically Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (ZCAM), have moved into…

— Josh Swihart 🛡 (@jswihart) January 7, 2026

The departing team announced plans to start a new company while continuing the same mission of building private money. Swihart emphasized that the Zcash protocol itself remains unaffected by the organizational changes, reassuring users and stakeholders.

In response, the Bootstrap board, the nonprofit overseeing Zcash, addressed the disagreement over a proposed transaction involving Zashi. The board acknowledged the team’s contributions but stressed that nonprofit rules require careful handling of any external investment.

Board Concerns and Market Implications

According to the board, proposals to privatize Zashi or bring in external capital could create legal vulnerabilities. They noted such transactions might expose Zcash to challenges that could harm the ecosystem or attract politically motivated attacks.

While these concerns are valid, the board clarified that for-profit projects can be valuable if managed properly. However, nonprofit constraints remain necessary to protect public assets and ensure they serve the broader community rather than private interests.

The disagreement highlights the tension between nonprofit governance and the flexibility often needed for tech startups. Despite ECC’s exit representing a major organizational shift, both the board and the former team confirm that Zcash’s core protocol remains secure and operational.

Market observers are closely watching how the departure will affect Zcash’s ecosystem and adoption. The event may influence short-term market sentiment, though long-term effects will depend on how both sides navigate the transition.

The post ZEC Falls 14% After Entire Zcash Core Team Resigns appeared first on CoinTab News.