Zcash Ecosystem Restructuring: ECC and Bootstrap Initiate Business Adjustments Due to Legal Challenges

Zcash Support Organization Bootstrap Recently, due to internal governance disagreements, it separated its business from the development company Electric Coin Company (ECC). According to public information, ECC has independently established a new company to circumvent legal restrictions under the non-profit organizational structure.

Organizational Changes Triggered by Legal Difficulties

As a registered non-profit organization under U.S. tax law Section 501©(3), Bootstrap faces strict legal restrictions when seeking external financing and capital operations. Meeting records show that the organization discussed “introducing external investment and privatizing Zashi” as alternatives, and engaged in multiple rounds of communication with legal advisors to ensure compliance.

ECC expressed concerns about this, believing that the existing governance framework poses “governance risks,” and therefore decided to part ways with Bootstrap and form an independent entity to address potential future business expansion needs.

Market Response and On-Chain Dynamics

Following the governance event announcement, ZEC tokens experienced short-term pressure. According to the latest market data, the current price of ZCash (ZEC) is $410.44, up 6.87% in 24 hours, a significant recovery from the 16% decline reported during the initial period.

Notably, despite short-term volatility, on-chain data shows increasing holdings by large investors, indicating a rising recognition of Zcash’s long-term value among institutional investors.

Industry Analysis

As a privacy-oriented blockchain project, the stability of Zcash’s ecosystem organization directly impacts the project’s development. The structural adjustment between Bootstrap and ECC fundamentally reflects the inherent limitations of the non-profit organizational model in the crypto ecosystem—how to achieve capitalization and business innovation while complying with existing legal frameworks is a challenge the entire industry is exploring.

The long-term effects of the organizational restructuring remain to be seen, but based on the market recovery speed, community concerns over this event have largely eased.