TORN, the governance token of the Ethereum-based coin mixing protocol Tornado Cash, experienced a significant decline in value following Binance’s announcement of its delisting. Within just an hour, the token’s price dropped by over 50%. This sudden decline led to concerns about the liquidity of TORN for its holders.
Delisting Announcement
Binance, one of the largest cryptocurrency exchanges, cited a standard periodical review of listed assets as the reason for delisting TORN. The exchange aims to maintain a high level of standards for its listed assets and conducts in-depth reviews when necessary. In this case, Binance determined that TORN no longer met its standards or aligned with industry changes.
“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,” stated Binance.
As a consequence of the delisting, the trading volume of the TORN/BUSD pair on Binance accounted for more than 57% of overall trading volume for the token. This delisting has raised concerns about the liquidity of TORN, as other exchanges may follow suit and delist the token as well.
Impact on TORN Holders
Given Binance’s stature in the cryptocurrency market, a delisting by the exchange can have far-reaching implications. TORN holders face the prospect of reduced liquidity and potential difficulties in trading the token on other platforms. The delisting also comes following the recent appointment of Richard Teng as CEO of Binance, who aims to enhance regulatory compliance efforts.
Tornado Cash, the coin mixing service that utilizes TORN, has garnered attention due to its association with hackers and cybercriminals in the past. In 2022, the US Treasury Department sanctioned Tornado Cash for its failure to establish effective controls against money laundering. Furthermore, it was revealed that North Korea’s Lazarus Group had used the service to launder substantial amounts of stolen funds.
In light of these developments, TORN holders must closely monitor the situation and assess the potential impact on their investments.
