Tornado Cash token TORN fell from $3.90 to $1.66 following the announcement that Binance exchange will delist it from its platform.
According to data from Coingecko, the governance token for cryptocurrency aggregator Tornado Cash (TORN) fell by more than 50 percent between November 26 and 27. Binance, a cryptocurrency exchange, announced the delisting of the token on the same day the collapse occurred.
Tornado Cash is a combining protocol for cryptocurrencies. It utilizes its TORN token to vote on proposals to enhance the protocol. The token fell 57% on November 26-27, from $3.90 to $1.66, an absolute nightmare.
The price decline coincided with the announcement by Binance, the largest cryptocurrency exchange by volume globally, that it would cease accepting TORN deposits on December 8 and withdrawals after March 7, 2024.
The United States Office of Foreign Asset Control (OFAC) sanctioned Tornado Cash on August 8 for purportedly facilitating money laundering. This prohibited U.S. citizens from utilizing the protocol.
Binance initially maintained that its exchange was inaccessible to U.S. residents. However, the United States Department of Justice disclosed on November 21 that it and Binance had reached a plea agreement.
Binance acknowledged, as part of the agreement, that it had catered to a subset of American clients without a valid business license in the United States.
Binance stated in its announcement that it had delisted TORN due to various factors that rendered the token ineligible for listing among its criteria for assets.
The Binance team said, “At Binance, we conduct periodic reviews of all digital assets we list to ensure they continue to meet the high standards we expect.” “We may delist a coin or token if it no longer satisfies this criterion or if the industry undergoes a significant transformation,” the source explained.
