Zcash’s developer team resigned, causing a 11% price drop in 24 hours. They left due to a governance dispute with Bootstrap. However, they plan to continue working on Zcash-related projects. The future of this privacy coin is less clear, but its open-source nature means development can continue under a new banner.

The dispute stemmed from disagreements over employment terms. Despite the rift, Zcash’s core investment thesis remains intact. Its supply policy mirrors Bitcoin’s, with a hard cap of 21 million coins and a halving schedule that increases mining difficulty over time. The bear case has strengthened, but the coin retains value for those seeking private transactions.

Investors may want to wait for more details on the developer team’s departure before buying more Zcash. While the disruption may lead to a slowdown in development, the core investment thesis remains strong. The possibility of a prolonged public spat is a concern, but the commitment of the developer team is still evident.

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Author Alex Carchidi holds positions in Bitcoin and Zcash. The Motley Fool also has positions in and recommends Bitcoin. The disclosure policy is available on their website. For more information, read the full article “Down 11% in 1 Day, is Zcash Still a Buy?” published by The Motley Fool.

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