Amid the crackdown against Tornado Cash, associated addresses, contributing developers, and anyone who uses the mixing platform, the project’s governance token called TORN has shuddered in value. TORN is an ERC20 with a fixed supply that is leveraged for governance proposals and voting. During the last seven days, the Tornado Cash governance token has lost 57.6% in value against the U.S. dollar.
Tornado Cash Token Loses More Than Half Its Value This Week
Everything that Tornado Cash has touched seems to have been tainted and over the past week, Tornado Cash (TORN), the project’s governance token, has lost more than half of its USD value. TORN is an ERC20-based token that was launched in February 2021, and 5% of the supply was given to users who took advantage of the mixing application prior to the snapshot.
There’s approximately 1,511,065 TORN tokens and 500,000 TORN was airdropped to the Tornado Cash community. Since the U.S. government cracked down on Tornado Cash and banned the mixing application alongside associated ETH-based addresses, TORN has taken a severe market beating.
TORN has seen $43.4 million in global business volume and much of this stems from sales. Popular crypto exchanges that list TORN include Binance, Bingx, and Bitget. 69.93% of all TORN trades today are paired with USDT, followed by BUSD (24.73%), BTC (3.92%), WETH (1.18%), and USDC (0.24%).
Additionally, 30% of the TORN stash was reserved for devs and contributors, and vested for a three-year linear vesting period with a one-year cliff. TORN is down 97.2% from the crypto asset’s all-time high on February 13, 2021.
TORN tapped an all-time low hour ago on Saturday morning (EST), hitting 11.81 per unit on Aug. If the TORN market path continues, the ERC20’s implied value will get lower and lower as time goes on. TORN investors may continue dumping after losing confidence in the project due to US government sanctions against Tornado Cash Mixer.
