TORN Token Plunges as Binance Axes Support Amid Regulatory Crackdown

The governance token of the Ethereum-based coin mixing protocol Tornado Cash, TORN, experienced a precipitous drop of over 60% following the announcement of its delisting from Binance.

Key Findings:

  • TORN's value plummeted from around $4 to $1.6 within hours of Binance's delisting announcement.
  • Binance's decision stems from a regular review process to ensure its listed assets meet the exchange's high standards.
  • The delisting is significant for TORN's liquidity, with Binance accounting for over 57% of its trading volume.
  • Binance's new CEO, Richard Teng, has emphasized regulatory compliance, potentially leading to further delistings.
  • Tornado Cash, a controversial mixing service, has been criticized for its association with cybercriminals and laundering activities.
  • The US Treasury Department sanctioned Tornado Cash in 2022 for facilitating money laundering for malicious actors.

Implications:

  • TORN's price crash highlights the risks associated with tokens linked to controversial projects.
  • Binance's delisting underscores the growing scrutiny of crypto exchanges and their role in combating illicit activities.
  • The regulatory landscape surrounding crypto assets is evolving, and token holders should stay informed about potential changes that could impact their investments.
  • The future of Tornado Cash remains uncertain, as the delisting and sanctions could hinder its adoption and usage.
Author: Denis Tabyrtsa

Other news