Zcash (ZEC), a privacy-backed cryptocurrency, went from standing out as one of the best-performing assets to experiencing a sharp price decline in just a few weeks.
At the time of publication of this note, ZEC cumulatively loses 15% in weeksas seen in the following graph.
This price decline also reflects a major change in market sentiment. In just over a month, investors went from FOMO (fear of missing out) to FUD (fear, uncertainty, and doubt). In a situation characterized by mass resignations of developers,something that could be interpreted as a blow to confidence in the project.
This change in the story contrasts with an interpretation that began circulating a few weeks ago. In fact, Bloomberg Intelligence analyst Eric Balchunas warned that ZEC: It could take away some of the attention and capital currently focused on Bitcoin (BTC).even though they are not directly competing for market leadership.
To do this, he relied on political analogies, comparing ZEC to third-party candidates in the United States, such as Gary Johnson and Jill Stein. These candidates have no chance of actually winning, but they can divide the vote and create side effects on the main stage.
Now, the situation at ZEC has changed 180 degrees.
As reported by CriptoNoticias, the recent drop in ZEC price came after comments from Josh Swihart, former CEO of Electric Coin Company. Confirm the departure of the entire developer team.
The decision, he explained, was related to a disagreement with the board of directors of Bootstrap, the nonprofit organization that oversees the company, following changes to working conditions that they believed would prevent them from working effectively and honestly.
The next few days will be key If the domestic crisis ultimately outperforms any bullish outlook.
