Zcash (ZEC) plummeted over 27% in 24 hours following the entire Electric Coin Company team's resignation, with analyst Hanzo warning the coin could hit $55.
The crash coincided with whales transferring $35 million to Binance and 200,000 tokens withdrawn from shielded pools.
ZEC traded near $400 Thursday afternoon falling from $530.
What Happened
Former CEO Josh Swihart announced the mass departure Tuesday, citing "constructive discharge" by Bootstrap board members over disagreements regarding privatizing the Zashi wallet.
On-chain data shows someone withdrew 200,000 ZEC from shielded pools, representing 1.2% of circulating supply.
A whale sent 74,002 ZEC valued at $35.75 million to Binance within 24 hours.
Exchange balances rose 7% as holders prepared to sell.
Short positions on ZEC continue increasing while derivative capital flows out.
Read also: Florida Files Bill To Create Bitcoin Reserve After 2025 Effort Stalled
Why It Matters
The combination of governance crisis and whale selling created what analyst Hanzo called a "freefall" with potential to reach $55 range.
While the broader altcoin market gained 7%, ZEC fell from $530 to $490 before accelerating lower.
Monero (XMR) gained as capital rotated away from Zcash.
The departing team plans to found a new company focused on "building unstoppable private money."
Founding member Zooko Wilcox assured users the protocol remains secure.
Despite bearish signals, Grayscale highlighted Zcash as promising for 2026 amid growing institutional privacy demand.
Read next: What Happens If Bitcoin Breaks $92K? Peter Brandt Identifies Critical Level