The delisting of the Tornado Cash token (TORN) by Binance, the world’s leading cryptocurrency exchange, has generated a substantial impact on its value, triggering a dramatic 50.76% drop in its price in a period of just 24 hours.
This decision by Binance is part of its periodic reviews to ensure compliance with high standards in the cryptocurrencies listed on its platform.
Although the specific cause behind Tornado Cash’s removal has not been revealed, this token was among the four delisted in this review.
This situation represents a new challenge for Tornado Cash in a year plagued by difficulties
Previously, in May, the token had already experienced a 30% decrease in value following a hacker attack on the governance protocol, resulting in the theft of a considerable amount of funds from its vault.
In addition, there have been controversies surrounding its use by hackers in the world of cryptocurrencies.
Setbacks, in August 2022, the US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash, which has likely contributed to the uncertainty and negative perception surrounding this token in the market.
Currently, the price of Tornado Cash stands at $1.93 USD, with a market capitalization of $7.9 million USD, ranking #929 according the offcial data from CoinMarketCap.
The trading volume in the last 24 hours has reached $2.22 million USD, evidencing a significant increase of 64.46%.
A crucial aspect to consider in the Tornado Cash landscape is its role as a transaction mixing service, providing privacy and anonymity to users by making it difficult to track transactions on the blockchain.
However, this has raised concerns among financial regulators about the potential use of these tools for illegal activities such as money laundering and terrorist financing.
This series of events has significantly affected the market perception of Tornado Cash, triggering extreme volatility in its value and posing significant challenges for its future.
The delisting of Binance, along with previous issues and controversies surrounding this token, have contributed to an unfavorable image, creating uncertainty among investors and users in the cryptocurrency ecosystem.
