Zcash developers leave ECC to launch wallet and business.
Developers behind the privacy-focused cryptocurrency Zcash have announced plans to launch a new wallet and create a new Zcash-focused company.
The latest development comes just a day after the team resigned en masse from the Electric Coin Company (ECC) following a governance dispute.
New wallet push
Former ECC CEO Josh Swihart has announced that the team responsible for launching Zcash and developing the Zashi wallet will now create a new Zcash wallet, codenamed cashZ, using the same Zashi code base. He explained that the group is not launching a new token and remains fully focused on the development of Zcash. According to Swihart, the decision to leave ECC and form a new company was driven by the need for a governance structure that better aligns with the goals of the ZEC ecosystem.
His tweet read,
“We’re all about 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.”
Swihart outlined three core reasons for the transition. First, he said Zcash is rooted in cypherpunk principles and needs leadership willing to actively defend privacy as a norm in the digital economy. Second, he argued that combining nonprofit foundations with fast-moving tech startups has historically led to misalignment, while adding that a conventional startup structure allows teams and leadership to remain more accountable and aligned. Third, Swihart said Zcash must be able to scale significantly to fulfill its mission and move beyond niche adoption to billions of potential users.
CryptoPotato had previously reported that several Zcash developers were “constructively fired” following internal governance disputes.
Declining development statistics
The announcement comes at a time when ZEC’s market performance and development metrics appear to be diverging. According to blockchain analytics firm Santiment, the token saw a sharp revival in late 2025. Its market capitalization increased approximately fifteenfold between late September and mid-November. Since then, however, ZEC’s price has fallen by about 40% over the past two months.
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Amid the price battle, Zcash’s development activity has done just that rejected to the lowest level since November 2021. Historically, steady or rising development activity has been associated with stronger long-term performance of major altcoins, while declining activity can indicate reduced innovation momentum.
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