The administrative dispute over #Zcash led to its collapse. Here is the reason why it might be less significant than it appears.

The privacy coin "#Zcash " team caused a stir on the network on Thursday by announcing their separation to establish a new company after a disagreement with "Bootstraps," a non-profit organization created to support the network. However, this move is unlikely to make a significant change for the second-largest privacy platform, according to Mert Mamtaz, CEO of Helios API platform (API) affiliated with Solana.

Mamtaz said in a post on X: "Zcash didn't lose anything. The European Control Center team (E. CC) was unhappy with its board, so they spun off the company itself under a different name and without a board... which means they are now free from political burdens."

This separation caused Zcash's value to drop by up to 19%, negatively impacting what had been a year of growth. Its value increased by 880% in 2025. Meanwhile, the competing coin "Monero" (XMR$461.13) saw the biggest rise following the announcement.

The team, which was working at Electric Coin Company (E. CC), one of the main companies developing the coin, announced that it will continue working on the token. Boot.. strap remains the non-profit organization overseeing Zcash, and the new development company was funded through open grants.

Josh Suyart, former CEO of E. CC, said in a post on X: "Most importantly, the Zcash protocol was unaffected. This decision simply aims to protect our team's work from malicious governance practices that hindered E. CC's original mission."

The dispute centered around the potential privatization of Zashi, a private mobile wallet for the protocol, aimed at attracting external investments. Boot... strap issued a statement saying it is working with a legal advisor to ensure any future path complies with U.S. law and does not jeopardize the broader Zcash community.

"Clear Conflict"

Former team members confirmed that Boot... strap's methods conflict with Zcash's broader goals.

Suyart wrote that the Bootstraps board was in "clear disagreement" with Zcash's mission, claiming that the team had been "constructively dismissed."

Sean Bowe, a prominent cryptography expert and former engineer of selective cryptographic algorithms, said that reorganizing under a new structure would free the project from what he described as Bootstraps' overly cautious governance, allowing developers to better focus on Zcash's mission.

He wrote on X: "We weren't slaves, and we would have left if we felt we could build Zcash better under a different structure. Well, that's exactly what happened two days ago."

Argon Khimani, who describes himself as a "meme war leader" in Zcash, shared this view, writing on X that "no one from Zcash has resigned," and that the entire development team is more cohesive than ever.

They realized that bureaucracy cannot be allowed to hinder the future of freedom.

Superficially, this crisis seems negative. The digital currency's value has dropped the most since December 1, and developers are frustrated, with a clear rift between Bootstraps and the network builders.

But in reality, the team that developed features like protected transactions and the Tayon update will continue working on the network, albeit under a new name.

Zuko Wilcox, former CEO of Electric Coin, also stated that Thursday's events will not affect the Zcash network.

"Zcash is open-source, permissionless, secure, private, and nothing happening in this dispute will change that. You can continue to use Zcash safely."

Monero Gain

Nevertheless, although a fundamental change in daily development is unlikely, the tense relations caused by this crisis may have structural impacts in the coming months.

This divergence may have benefited Monero, which increased in value by up to 6.5%, according to Coin... Desk data. XMR is currently traded with a market cap of $8.4 billion, surpassing ZEC's market cap of $7 billion.

Julian, founder of Ciphe.. rLabs, a Web3 security company, posted a comparison between ( and ) on X, writing: "This clearly explains everything. As a true privacy advocate, I would choose Monero. A coin backed by investment capital versus a privacy-focused digital currency with real demand."