TORN Token Plummets After Binance Delisting
The governance token of Tornado Cash, TORN, experienced a significant drop in value after Binance announced its delisting. Within just an hour, the token’s price plummeted by over 50%. Starting at around $4, it quickly fell to $1.95, representing a loss of 52%. Although it briefly recovered, sellers regained control, causing it to hit lows of approximately $1.6, almost 60% lower than before the announcement.
Binance Removes TORN and Other Tokens
Binance decided to delist TORN along with other tokens as part of its routine review process. The exchange aims to maintain high standards for listed assets and periodically assesses their compliance. If a token no longer meets these standards or if industry changes warrant further examination, Binance may choose to delist it.
Impact on Liquidity and Potential Follow-On Delistings
The delisting has significant implications for the liquidity of TORN. Currently, the TORN/BUSD pair accounts for over 57% of the token’s trading volume on Binance. Furthermore, other exchanges may follow Binance’s lead and delist TORN as well, exacerbating liquidity challenges for token holders.
New CEO Focusing on Regulatory Compliance
Richard Teng recently took over as CEO of Binance and has prioritized regulatory compliance efforts. This move aligns with his commitment to ensure Binance adheres to global regulations.
Tornado Cash’s Controversial Reputation
Tornado Cash operates as a coin mixing service that obscures the identities of Ethereum transaction participants. However, it has faced criticism for its popularity among hackers and cybercriminals. In 2022, the US Treasury Department sanctioned Tornado Cash for inadequate controls against money laundering. Additionally, the department later stated that North Korea’s Lazarus Group had used the service to launder stolen funds worth over $100 million.
Hot Take: TORN Token Suffers Steep Losses After Binance Delisting
The delisting of TORN by Binance caused a sharp decline in the token’s value. This development highlights the influence major exchanges have on token liquidity and market sentiment. TORN holders now face increased uncertainty as other exchanges may follow suit and delist the token. The regulatory compliance focus of Binance’s new CEO further emphasizes the importance of aligning with industry regulations. As Tornado Cash continues to navigate its controversial reputation, it will need to address concerns about its use by cybercriminals to maintain its credibility in the crypto space.
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