Zcash attempts to restart after Electric Coin Company's exodus and new CEO appointment

Source: PortaldoBitcoin Original Title: Zcash Attempts to Restart After Exodus of Electric Coin Company and Appointment of New CEO Original Link: https://portaldobitcoin.uol.com.br/zcash-tenta-recomecar-apos-exodo-da-electric-coin-company-e-nomeacao-de-um-novo-ceo/ The privacy-focused cryptocurrency Zcash has plummeted in recent weeks, dropping double digits month over month amid turbulence and executive departures from the nonprofit organization that created and supports the project.

At the time of writing, Zcash is trading at US$ 361.03, down 5% for the day, according to CoinGecko data.

The turbulence comes after an unusually strong year for Zcash, which was among the top-performing large-cap cryptocurrencies in 2025, rising over 636% compared to the previous year and surpassing rival privacy coins like Monero.

The Crisis at Electric Coin Company

The price of Zcash dropped immediately after Electric Coin Company (ECC) — the organization that created and continues to support the protocol — lost its entire core team earlier this month.

Former CEO Josh Swihart stated that the Bootstrap board, the nonprofit organization created to support Zcash through governance of Electric Coin Company, had “become clearly misaligned with Zcash’s mission,” announcing that he and his former colleagues would launch a new project aimed at “building unstoppable private money.” In response, the board said the disagreement was due to differences of opinion on whether the organization should transform into a for-profit company.

New Projects and Leadership

The project, called cashZ, is expected to focus on the full development of the Zcash ecosystem, including a new wallet dedicated to Zcash, although further details are still limited.

Other initiatives related to Zcash are also gaining momentum. Shielded Labs, an independent Zcash development group with founder Zooko Wilcox as a collaborator, recently received approximately US$ 1.16 million in funding from Gemini and Facebook founders Tyler and Cameron Winklevoss.

Meanwhile, Electric Coin Company is under new leadership. Earlier this month, ECC appointed Steve Smith as interim CEO, after nearly three years at a cryptography project development company.

The appointment drew criticism on social media, with some users commenting that bringing in an executive from another crypto project — one criticized by privacy advocates — would be an uncomfortable choice for a privacy-focused cryptocurrency like Zcash.

What Does the Future Hold for Zcash?

Illia Otychenko, chief analyst at a cryptocurrency exchange, highlighted issues in Zcash’s fundamentals, pointing to a clear decline in network activity on its blockchain since the peak recorded in November 2025.

“Transparent transactions have fallen about 79%, and shielded transactions (Orchard) have decreased approximately 60% since the November peak,” he said. Otychenko noted that most on-chain metrics for Zcash remain elevated compared to levels before the September 2025 high, with network fees even reaching a record high this month.

“This suggests there is still residual demand, which could support prices in the short term.”

The analyst believes that Zcash’s long-term performance will depend on how well its management executes its plans.

“Even with new leadership, the real impact will depend on the specific roadmap they establish and how they balance growth with preserving Zcash’s privacy ethos,” he said.

While he believes derivative projects like cashZ could be positive for the broader Zcash ecosystem, any lasting impact “will depend on whether they drive significant adoption or address real user needs.”

“The price of Zcash is primarily driven by a combination of on-chain activity, network utility, and market and privacy narratives,” added Otychenko.

Rajiv Sawhney, head of international portfolio management at a digital asset management firm, predicted that Zcash is unlikely to show a “massive divergence” from overall crypto market performance.

He said that “macroeconomic themes and geopolitical risks are having a greater impact on cryptocurrency prices than specific altcoin themes” in the current market.

“Regulatory issues related to cryptocurrency legislation are exerting ongoing pressure on cryptocurrency prices, including privacy tokens,” he added.