The Fall of TORN Token
The governance token for crypto mixer Tornado Cash, TORN, has experienced a significant decline of over 50% since Nov. 26, according to CoinGecko. This drop occurred on the same day that Binance, the largest crypto exchange by volume, announced the delisting of the token.
The Role of TORN in Tornado Cash
Tornado Cash is a cryptocurrency mixing protocol that utilizes the TORN token for voting on proposals related to protocol upgrades. Between Nov. 26 and 27, the token’s value plummeted from $3.90 to $1.66, marking a 57% decrease. The price decline coincided with Binance’s announcement that it would no longer accept TORN deposits after Dec. 8 and would cease processing withdrawals after March 7, 2024.
Sanctions and Regulatory Issues
In August, Tornado Cash faced sanctions from the United States Office of Foreign Asset Control due to allegations of facilitating money laundering. Consequently, U.S. residents were prohibited from using the protocol. Binance initially claimed it did not allow U.S. residents on its exchange but later admitted serving some U.S. customers without proper licensing.
Binance’s Delisting Decision
Binance explained its decision to delist TORN by stating that the token no longer met its standards for listable assets based on various factors. The exchange periodically reviews each digital asset listed to ensure they maintain a high level of standard. When a coin or token fails to meet this standard or if industry conditions change, Binance conducts an in-depth review and may delist it.
Hot Take: The Impact of Binance’s Delisting
The delisting of TORN by Binance has caused a significant drop in the token’s value. This decision reflects Binance’s commitment to maintaining high standards for listable assets and adapting to changing industry conditions. The future of TORN remains uncertain as it faces regulatory hurdles and the consequences of being delisted from a major exchange.
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