TORN, a governance token linked to popular cryptocurrency mixing protocol Tornado Cash, suffered a sharp decline, plummeting more than 50% on November 26 after Binance announced its delisting from the exchange. According to data from CoinGecko, the token plummeted from $3.90 to $1.66 in one day, losing a whopping 57% of its value.
How Binance’s Decision Affects TORN Price
tornado cacheKnown as a cryptocurrency hybrid protocol, it utilized TORN as its governance token, allowing users to vote for protocol upgrades. However, the announcement by Binance, the world’s largest cryptocurrency exchange, had a significant negative impact on the value of TORN. Binance announced that it has decided to suspend TORN deposits starting December 8th, and withdrawal processing will be suspended until December 8th. March 7, 2024.
The token’s sharp decline reflects the impact of Binance’s delisting announcement and hints at the significant impact such action by a major exchange could have on the token’s market performance.
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Regulatory Investigations and Delisting Basis
Tornado Cash faced regulatory hurdles in early August when the U.S. Office of Foreign Asset Control imposed sanctions on protocols it said facilitated money laundering, restricting U.S. residents from utilizing the platform.
Binance’s decision, on the other hand, comes after the U.S. Department of Justice exposed incriminating transactions with the exchange on November 21. As part of the agreement, Binance acknowledged that it serves U.S. customers without the necessary licenses to operate in that country. Previous claims of restricting access to U.S. residents.
The exchange attributed TORN’s delisting to the token’s failure to meet Binance’s high standards for listable assets. In an official statement, Binance said that it conducts regular reviews to ensure that listed assets maintain expected standards. If a coin or token no longer meets these standards or industry dynamics evolve, a comprehensive evaluation may be conducted, potentially leading to delisting.
Binance’s stance demonstrates its commitment to maintaining rigorous levels of quality and compliance within its listed assets, even if it means removing tokens that no longer meet its standards.