TORN Token Plunges 57% After Binance Delisting Announcement
The privacy coin TORN, which is the governance token for the Tornado Cash mixing protocol, experienced a significant drop in value following the announcement by Binance that it would be delisting the asset. In just one day, TORN went from $3.90 to $1.66, resulting in a 57% decrease. Binance stated that it would stop accepting TORN deposits on December 8 and would end withdrawals by March of next year.
Delisting Reasons and Impact
- Binance decided to delist TORN due to non-compliance with listing standards
- The price drop coincided with Binance’s admission of serving some US customers without a license
Tornado Cash is a cryptocurrency mixing protocol that offers transaction mixing services to obscure the flow of funds on the blockchain, providing anonymity favored by privacy advocates but criticized by regulators for enabling criminal activities. The protocol was sanctioned by the U.S. Treasury for allegedly facilitating money laundering by North Korean state hackers and cybercriminals.
Binance’s Compliance Pressure
Binance, known for its jurisdiction-hopping strategy to avoid regulatory scrutiny, faced pressure to delist TORN and other tokens that attract regulatory attention after settling with the Justice Department and admitting to doing business with some U.S. users without proper registration. This move indicates Binance’s efforts to comply with U.S. authorities and distance itself from controversial assets.
Implications for Privacy Advocates and Industry Maturation
The delisting of TORN by Binance is seen as a blow to those who advocate for transactional privacy. However, it may also signal the maturation of the cryptocurrency industry as companies strive for mainstream legitimacy and distance themselves from associations with criminal activities. Regardless, TORN token holders now face a significant decrease in value as it trades at nearly a 60% discount on major exchanges.
Hot Take: TORN Token Plummets After Binance Delisting
The delisting of the TORN token by Binance has had a profound impact on its value, with a 57% drop in just one day. This decision by Binance comes as the exchange faces pressure to comply with U.S. authorities and distance itself from assets that attract regulatory scrutiny. While this move may be seen as a betrayal of privacy principles by some, it also indicates the maturation of the cryptocurrency industry as companies strive for mainstream acceptance. TORN token holders now find themselves with significantly diminished holdings as they trade at a steep discount on leading exchanges.
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