Quick Breakdown
- Former ECC developers are launching a new Zcash wallet, cashZ, using the Zashi codebase
- The team says the move was driven by governance issues and a desire to return to cypherpunk values
- ZEC saw a minor price recovery but remains far below historical highs
Developers behind the privacy-focused cryptocurrency Zcash have confirmed they are already building a new wallet, less than 24 hours after announcing their departure from Electric Coin Company (ECC).
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— Josh Swihart 🛡 (@jswihart) January 8, 2026
Former ECC CEO Josh Swihart revealed late Thursday that the same team responsible for launching Zcash and developing the Zashi wallet is now creating a new Zcash wallet under a fresh company. The wallet, codenamed cashZ, will be built using the existing Zashi codebase and is expected to launch within weeks.
Importantly for users, Swihart said current Zashi wallet holders will be able to migrate seamlessly, with no disruption to their funds or privacy features.
cashZ wallet to carry Zashi’s legacy
Despite the abrupt organizational split, Swihart stressed that nothing has changed in the team’s commitment to Zcash itself. He said the full Zashi development team remains focused on “full-stack Zcash development” and is not planning to introduce any new tokens.
“We aren’t launching any new coins,”
Swihart said.
“We’re just scaling Zcash. To do that, we needed to leave and start a new Zcash-focused company.”
The wallet announcement followed hours after the developers formally exited ECC, citing governance disputes and disagreements over nonprofit constraints.
A return to Zcash’s cypherpunk roots
In a detailed explanation on the new company’s website, Swihart outlined why the team felt a fresh start was necessary. He argued that Zcash was built on cypherpunk principles and needs an organization that treats privacy as a fundamental right, similar to physical cash.
Swihart also criticized the friction that often arises when nonprofit foundations oversee fast-moving crypto development. According to him, nonprofits prioritize rules and process, while startups are better suited for innovation and rapid execution.
Finally, he said Zcash has outgrown its early-stage identity. With renewed momentum over the past two years, the project now needs a scalable structure to compete with major networks like Bitcoin, Ethereum, and Solana.
ZEC remains down roughly 86% from its 2016 all-time high of $3,191 and about 38% below its 2025 peak of nearly $700, according to CoinGecko data.
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