Zcash (ZEC) crashed below $400 following a mass resignation of the employers and developers behind the project. The mass exodus comes after the employees had an internal conflict with the board of directors of the parent company.
On Wednesday, the entire team of the Electric Coin Company (ECC) responsible for the development of Zcash resigned from their positions, as “In short, the terms of our employment were changed in ways that made it impossible for us to perform our duties effectively and with integrity,” stated CEO Josh Swihart.
On December 1, the ECC, which is governed by Bootstrap, a nonprofit that oversees Zcash, reorganized the ZEC team. The ECC rearranged the Protocol Research and Security Finance, Partnerships and Support, Product, Marketing, and Engineering teams to ensure the growth of the project. However, after the reorganization, the board of directors of Bootstrap “Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (ZCAM) have moved into clear misalignment with the mission of Zcash.” Swihart stated.
Once the entire team started leaving Zcash, the token started to crash. It slipped below an important support level—the 50-day moving average. As long as the ZEC is above this level, the bulls have a chance of taking over the market. However, now that the token has crashed below this level, it is back to square one.
On the technical side, the token was trading inside a symmetrical triangle, which could have broken out to the upside. But the pattern has been dismantled, and a breakout to the upside seems very difficult. And in the coming days, ZEC may crash further, as it may have a competitor introduced by ex-employees.
When it comes to crypto projects, one of the metrics that investors look for before putting their money in is the development team. They check to see if the team has pulled off good projects, and if the team possesses a good portfolio, then investors see potential and put their money in. With ECC employees doing an excellent job at Zcash, the new company they set up would drain ZEC and crash the prices.
