Multicoin Is Buying Zcash, but the Team That Built ZEC Is Gone

The team that built Zcash (ZEC) quit in January. Four months later, the privacy coin is at a six-month high, and one of crypto's investment firms just admitted it's been accumulating ZEC quietly since February.

Multicoin Capital's disclosure of a large Zcash (ZEC) position sent the privacy coin surging more than 40% in 24 hours, pushing it’s price to $607.66, the highest level since November 2025.

The rally marks one of Zcash’s strongest short-term performances in 2026, pushing the asset more than 213% above its March lows and extending a broader 30-day gain of over 113%. The surge lifted Zcash’s market capitalization above $9.3 billion, overtaking Monero (XMR), which stands at roughly $7.7 billion.

The move followed revelations that crypto investment firm Multicoin Capital has been quietly building a substantial ZEC position since February, according to comments from co-founder Tushar Jain.

Multicoin framed its Zcash thesis around the risk of proposed California wealth-tax legislation, arguing that as governments expand visibility into private financial holdings, investors will increasingly seek assets that are mathematically shielded from oversight.

Multicoin’s thesis taps into a growing concern that expanding KYC rules, AI-driven financial surveillance, and proposed wealth taxes across OECD countries are steadily shrinking the space for private asset ownership. In California, proposed wealth tax legislation would even require residents to disclose global holdings. 

ZEC is positioned as a counterpoint through “shielded” transactions, using zk-SNARK cryptographic proofs to validate transfers without revealing sender, recipient, or amount.

More recently, shielded transaction speeds have dropped below three seconds, making Zcash viable for everyday payments for the first time.

Market data from Santiment suggests retail interest in privacy coins is rising, driven by tighter exchange compliance rules and increasing concerns over data tracking.

Despite the price surge and renewed optimism, here’s the detail getting buried: Zcash's core development team is gone. 

In January 2026, Josh Swihart, CEO of the Electric Coin Company (ECC)—the organization that created and maintained Zcash—resigned alongside the entire ECC staff, citing “constructive discharge” after a governance battle with the Bootstrap Project board.

The former team has since formed a new, independent entity focused on privacy technology, though it has not launched a rival chain or fork.

In May 2026, the Foundation urgently released Zebra 4.4.0 after discovering five critical vulnerabilities, including three that could have triggered a chain split.

The update landed during a major network migration and without the original ECC engineering team in place, increasing operational risk.

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