Zcash Plunges 17% as Core Development Team Walks Out Following Internal Power Struggle

Another day, another crypto governance meltdown sends a digital asset reeling. This time it's Zcash taking the hit—a 17% nosedive triggered by the abrupt departure of its core development team.

The Great Zcash Exodus

Sources close to the project describe a clash over the protocol's future direction that turned toxic. The core team—the engineers who actually build and maintain the network—reportedly hit a breaking point, opting to walk away entirely rather than continue under the current leadership structure. It's the crypto equivalent of the pilots abandoning the cockpit mid-flight.

When the Builders Bail

For a privacy-focused coin like Zcash, the core devs aren't just employees; they're the guardians of its fundamental technology. Their exit isn't a minor staffing change—it's an existential red flag for investors and users who rely on the protocol's integrity. The immediate 17% sell-off reflects a market brutally repricing the risk of a development vacuum.

Privacy Coins and Political Problems

Let's be real—this drama isn't happening in a vacuum. Privacy coins operate under a regulatory microscope, making internal unity more crucial than ever. A public civil war is the last thing Zcash needed as global watchdogs sharpen their knives. It's a stark reminder that in crypto, the most dangerous code isn't written in Solidity or Rust; it's written in human ego and organizational charts.

The fallout leaves Zcash at a perilous crossroads. Can it attract new talent to steer the ship, or will this be the blow that finally sinks a once-promising project? In the high-stakes casino of crypto investing, sometimes the house doesn't just win—it implodes and takes your chips with it.

ZCash Faces Massive Crash Amid Team Exodus

Electric Coin Company (ECC), the core development team behind Zcash’s protocol, resigned on Jan. 7, 2026, following growing internal struggles within the project. ECC CEO, Josh Swihart, accused the governing body of implementing governance changes that made it impossible for the team to work effectively. Given the mass exodus of the core development team, Zcash (ZEC) may see continued price dips as investor sentiment drops. The asset could be in for long winter.

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…

Zcash (ZEC) experienced quite a sharp rally in late 2025. ZEC’s rally came amid a larger spike in prices of privacy-focused coins. Monero (XMR), another privacy-focused cryptocurrency, also followed the trend. However, ZEC’s rally came to a halt after internal struggled came to light. Investors are likely not going to pour funds into the project unless the matter is resolved, or a new team takes charge of the development end.

Given the larger bearish market environment, it is unlikely that Zcash’s (ZEC) price will rebound anytime soon. Moreover, macroeconomic uncertainties continue to bar investors from risky assets, such as cryptocurrencies. Market participants will most likely continue their risk-averse approach. Cryptocurrencies, especially one with internal struggles, may suffer further price dips over the coming weeks. ZEC’s price seems to have substantial challenges before it could see any positive price action.