Tornado Cash Token Plummets Following Binance Delisting Announcement
Luisa Crawford Nov 28, 2023 10:25
The Tornado Cash token's value significantly decreased following Binance's delisting announcement, amid regulatory and market compliance issues in the cryptocurrency sector.
Following the news that Binance, the biggest cryptocurrency exchange in the world in terms of volume, made about the delisting of the Tornado Cash (TORN) token, the value of the token witnessed a significant decline over time. It is important to note that the market value of TORN, which is the governing token for the cryptocurrency mixing protocol Tornado Cash, has seen a dramatic decline of more than fifty percent.
In accordance with the information provided by CoinGecko, the collapse was particularly severe, with the value of TORN falling from around $4.00 to $1.66, which represents a reduction of 57%. This precipitous decline happened at the same time that Binance announced that it will stop accepting deposits of TORN on December 8 and would totally stop taking withdrawals after March 7, 2024.
A portion of the decrease in the value of TORN may be ascribed to the penalties that were placed on Tornado Cash by the United States Office of Foreign Asset Control on August 8 for allegedly supporting operations related to money laundering. This resulted in a legal prohibition that prevented those living in the United States from utilising the protocol.
When Binance made the decision to delist TORN, it was affected by a number of different variables. On a regular basis, the exchange examines digital assets to make certain that they are up to the required standards. According to Binance, the delisting of TORN, along with other tokens such as BitShares (BTS), PERL.eco (PERL), and Waltonchain (WTC), was due to decreased development activity, poor liquidity and trading volume, and concerns about unethical behaviour or neglect. Other tokens to be delisted include Waltonchain (WTC), PERL.eco (PERL), and more. The date of the delisting is set for the seventh of December in the year 2023.
The values of other tokens, such as Waltonchain, PERL.eco, and BitShares, also saw significant drops, with falls of 56%, 54%, and 47%, respectively. This is an important development. As a result of this decision, Binance recently reached a settlement with the authorities in the United States that was worth $4.3 billion. Additionally, the company experienced a shift in its leadership, with the previous CEO Changpeng Zhao resigning from his position.
Binance's decision to remove Tornado Cash from its list of cryptocurrencies and the following decline in the token's value are two examples that illustrate the substantial influence that exchange choices have on cryptocurrency markets. Additionally, it is a reflection of the continued regulatory problems that the cryptocurrency sector is experiencing, as well as the critical role that compliance plays in preserving the integrity of the market.
Image source: Shutterstock