The cryptocurrency mixer Tornado Cash’s governance token, TORN, has plummeted by 57% since November 26, according to data from CoinGecko. This dramatic decline coincides with the announcement by Binance, the world’s largest crypto exchange by volume, that it will delist TORN.
The value of Tornado Cash plummeted, falling from around $4.00 to a low of $1.66. This depreciation occurred as Binance revealed its decision to cease accepting TORN deposits as of December 8 and cease processing withdrawals after March 7, 2024.
This steep decline reflects the market’s sensitivity to decisions made by major players like Binance. Other cryptocurrencies, such as BitShares, PERL.eco, and Waltonchain, also listed for delisting, significantly dropped their values. BitShares experienced a significant drop of approximately 44% on Monday. Similarly, Waltonchain and PERL.eco witnessed a substantial decline of around 59%.
“We periodically review each digital asset we list to ensure that it continues to meet the high level of standard we expect,” said Binance. “When a coin or token no longer meets this standard, or the industry changes, we conduct a more in-depth review and potentially delist it. We believe this best protects all our users.”
The backdrop of this decision involves legal challenges faced by co-founder Roman Storm’s plea of not guilty in a case of alleged money laundering. Furthermore, Binance’s recent settlement with U.S. authorities, involving a substantial penalty, underscores the increasing regulatory scrutiny.
Binance’s action and the market’s reaction highlight the ongoing evolution in the cryptocurrency sector. As the industry continues to mature, such developments are expected to play a crucial role in shaping the future landscape of digital currencies.