The Impact of Binance Delisting Tornado Cash (TORN) Token

The Ripple Effect of Binance‘s Decision

In recent news, the world’s largest cryptocurrency exchange, Binance, announced the delisting of the Tornado Cash (TORN) token. This decision had a significant impact on the value of the token, leading to a dramatic decline of over fifty percent. TORN is the governing token for the cryptocurrency mixing protocol Tornado Cash.

Market Value Plummet

According to CoinGecko, the value of TORN plummeted from around $4.00 to $1.66, marking a steep reduction of 57%. The decline coincided with Binance‘s announcement that it would cease accepting deposits of TORN on December 8 and would completely halt withdrawals after March 7, 2024.

Legal Hurdles Contributing to Decline

Part of the decline in TORN’s value can be attributed to the penalties imposed by the United States Office of Foreign Asset Control on Tornado Cash in August for purportedly supporting money laundering operations. This legal restriction prevented individuals in the United States from using the protocol, causing further strain on TORN’s market performance.

Factors Influencing Binance‘s Decision

Binance‘s choice to delist TORN was influenced by multiple factors. The exchange regularly reviews digital assets to ensure they meet necessary standards. In the case of TORN, as well as other tokens like BitShares (BTS), PERL.eco (PERL), and Waltonchain (WTC), the decision was influenced by decreased development activity, poor liquidity and trading volume, and concerns about unethical behavior or neglect. The delisting date is set for December 7, 2023.

Impact on Other Tokens

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The delisting of TORN also had a Ripple effect on other tokens. Values of tokens such as Waltonchain, PERL.eco, and BitShares experienced significant drops, with declines of 56%, 54%, and 47% respectively. These developments come as Binance recently settled with U.S. authorities for $4.3 billion and underwent a change in leadership, with the former CEO resigning.

The Broader Implications

Binance‘s decision to delist Tornado Cash and the subsequent decline in the token’s value serve as a reminder of the significant influence that exchange actions have on cryptocurrency markets. It also underscores the ongoing regulatory challenges facing the cryptocurrency sector and the vital role of compliance in upholding market integrity. These events highlight the need for market participants to adapt to evolving regulatory landscapes while navigating the dynamics of cryptocurrency markets.

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### News source: blockchain.news

By Team