Zcash (ZEC) suffered a sharp price collapse after the entire core development team at the Electric Coin Company (ECC) resigned amid a governance fight with the Bootstrap board.
The departure was the culmination of an irreconcilable conflict between ECC and the Bootstrap non‑profit that oversaw parts of Zcash governance. According to statements from ECC leadership, disagreements ranged from project direction to employment conditions and the effective ability of the core team to execute its roadmap.
The split was not limited to a handful of staff: the core team left en masse and some members immediately moved to launch a separate effort, reported in the market as CashZ Wallet and a new company founded by former ECC personnel.
The resignations centered on a prolonged governance dispute. ECC CEO Josh Swihart described actions by the Bootstrap board as “malicious governance actions,” and subsequently announced his departure to form a new company, signalling a decisive break in the existing ecosystem.
Commentary around the incident referenced longstanding scrutiny of privacy coins; that dynamic amplified cautious behaviour among some investors who weighed the governance shock alongside regulatory questions already associated with privacy‑focused assets.
Market reaction and technical outlook
Market responses were rapid. Reports documented single‑day drops near 20% and broader moves that placed ZEC inside a 30% breakdown range over the ensuing days. Sentiment metrics tumbled from near 90 down to roughly 5 in a matter of days, illustrating how governance failures translated into a near‑total loss of positive market appetite.
Trading flows amplified the decline. Analyses cited a wave of derivative liquidations, concentrated whale activity—with large holders reportedly accumulating about $6 million of ZEC during the sell‑off—and a technical pattern described by some commentators as a bearish head‑and‑shoulders on the 12‑hour chart.
Operationally the protocol remained open source and running. However, the mass resignation removed the principal team responsible for upgrades and coordination.
For traders and institutional holders the immediate question is execution: who replaces the expertise that left ECC, and whether development will fragment between the original ecosystem and the teams now working independently.
Investors are now turning their attention to any formal responses from the Bootstrap board, announcements from remaining community maintainers, and signs that a coordinated maintenance and upgrade plan will be re‑established—events that will determine whether confidence can be restored and liquidity stabilised.
