Zcash Rebounds as Developers Clarify Exit Was Structural, Not a Walkout
Zcash (ZEC) rebounded on January 8 after an initial sharp sell-off triggered by concerns over its core development team.
The recovery followed fresh clarification from Electric Coin Company (ECC) leadership, which helped ease fears that the privacy-focused blockchain had been abandoned.
ECC Clarification Reframes the ExitZEC price fell more than 20% at one point, briefly dropping below $390, before recovering above the $430 level.
Trading volume spiked during the decline, suggesting forced selling driven by headline risk rather than a change in protocol fundamentals.
Zcash Price Recovery After Sudden Crash. Source: CoinGecko
The sell-off followed an earlier statement from ECC CEO Josh Swihart. The entire ECC team had left after what he described as “constructive discharge” due to governance disputes with the Bootstrap nonprofit board.
That initial message sparked concern that Zcash had lost its core developers.
However, follow-up clarification later in the day reframed the situation. Swihart said the team remains fully committed to Zcash and has reorganized under a new startup structure.
Also, he emphasized that the move was driven by structural constraints of nonprofit governance. It was not a departure from the project itself.
We are all in on Zcash.
We need to scale Zcash to billions of users.
Startups can scale, but nonprofits can't.
That's why we created a new Zcash startup.https://t.co/ZurjfTxnPi pic.twitter.com/ksnwLewpPp