Zcash Loses Its Developers as Monero Reclaims Privacy Leadership
On January 7, 2026, the privacy coin sector faced one of its most decisive moments. The entire core team of Electric Coin Company, the main developer behind Zcash, officially exited the project, leaving the network without its primary technical backbone.
A Governance Conflict That Finally Exploded
The mass departure followed a prolonged conflict with the board of Bootstrap, the nonprofit organization overseeing ECC operations. According to former CEO Josh Swihart, the working environment had deteriorated to the point of what he described as “constructive dismissal,” effectively forcing the team out.The tensions were not sudden. Zcash founder Zooko Wilcox stepped down as CEO in December 2023, and Zcash Foundation board member Peter Van Valkenburgh left in January 2025. The fracture had been building for years.
Market Reaction Was Immediate
Investors reacted instantly. Within 24 hours of the announcement, ZEC fell more than 20 percent, dropping from $501 to $393. The collapse came just weeks after Zcash had reached a $10 billion market capitalization and posted over 800 percent growth during 2025.The timing could not have been worse. Starting July 2027, the European Union plans a full ban on anonymous cryptocurrencies, placing enormous pressure on privacy-focused projects.
Zcash Without a Core Team
Former ECC developers have already announced plans to launch a new wallet called cashZ and a separate company. However, the immediate reality remains unchanged: Zcash is now effectively without its principal development team during a period of intensifying regulatory scrutiny.Monero Quietly Takes the Lead
Against this backdrop, Monero has once again asserted its position as the dominant privacy cryptocurrency. XMR gained more than 120 percent in 2025 and now commands roughly 70 percent of the privacy coin market.Unlike Zcash, where privacy remains optional, Monero enforces mandatory privacy for every transaction. This design choice has proven resilient under regulatory pressure and exchange delistings.
No Compromises on Privacy
Monero developers have repeatedly stated they will not weaken privacy features to preserve exchange listings. Despite delistings from major platforms such as Binance, the project continues active development and community-driven funding.With a market capitalization exceeding $7 billion and a price hovering around $430, Monero remains operationally decentralized and ideologically consistent.
Conclusion
The collapse of Zcash’s development structure marks a turning point in the privacy coin landscape. While corporate governance disputes fractured Zcash at a critical moment, Monero’s uncompromising approach to privacy and decentralization has allowed it to emerge as the sole large-scale privacy network with intact development, ideology, and momentum.Editorial Team - CoinBotLab
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