Binance Delisting Triggers 50% Plunge in Tornado Cash's TORN Token Amid Regulatory Challenges
Summary:
TORN, the governance token of the crypto mixing protocol Tornado Cash, saw its price depreciate by over 50% from Nov. 26-27 coinciding with Binance's decision to delist the token. Tornado Cash was previously sanctioned by the U.S Office of Foreign Asset Control (OFAC) for alleged involvement in money laundering. Binance, which recently reached a plea deal with the U.S Department of Justice, cited that the TORN token failed to uphold its listing standards, leading to its delisting.
Tornado Cash's control token, TORN, faced a drastic drop of over 50% between Nov. 26-27, as shown by Coingecko's figures. This tumble coincided with the international cryptocurrency exchange platform, Binance, revealing its decision to delist TORN. Chart data from Coingecko highlights a catastrophic 24-hour pattern for Tornado Cash.
Tornado Cash, a cryptocurrency blending protocol, utilizes its TORN token for conducting votes on propositions for its advancement. Between Nov. 26-27, the token plunged from a value of $3.90 down to a meager $1.66 - a staggering 57% decrease. This significant depreciation occurred simultaneously with Binance, the dominant global crypto exchange by trading volume, declaring it will end accepting TORN deposits by Dec. 8 and cut off all withdrawal processing post-March 7, 2024.
Previously, on Aug. 8, the United States Office of Foreign Asset Control (OFAC) imposed sanctions on Tornado Cash for its supposed involvement in money laundering, which subsequently prohibited U.S. citizens from engaging with the protocol.
Originally, Binance asserted that it denied U.S. residents from utilizing its exchange service. However, on Nov. 21, the United States Department of Justice declared a plea agreement with Binance. Under the terms of this agreement, Binance accepted their oversight in catering to several U.S. clients without possessing the requisite U.S. business license.
Justifying its delisting decision, Binance stated that the TORN token failed to maintain its asset listing standards, indicated by various factors. "We habitually assess every digital asset we list to assure it adheres to our stringent standard. If any coin or token falls short of this standard or the industry undergoes shifts, we execute a comprehensive review and, if necessary, delisting", the Binance team conveyed.
Published At
11/27/2023 9:30:00 PM
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