Tornado Cash shows that DeFi can’t escape regulation
DeFi developers seriously need to consider working with regulators on compliance issues if they want their projects to succeed.
CointelegraphLog in/ Sign up
TORN price sinks 45% after U.S. Treasury sanctions Tornado Cash — rebound ahead?
Follow
Tornado Cash (TORN) has lost almost half its market valuation two days after being slapped with sanctions by the U.S. Treasury Department.
The department accused Tornado Cash, a crypto mixer platform, of laundering more than $7 billion in cryptocurrencies, including a stash of $455 million allegedly stolen by North Korea-based hackers.
Immediate reactions were followed by U.S.-based crypto companies, including Circle and Coinbase. In a controversial move, the popular crypto firms blocked the movements of their jointly-issued stablecoin USDC tied to Tornado Cash's blacklisted smart contracts.
TORN price drops 45%
The news prompted traders to limit their exposure to TORN, Tornado Cash's native token.
On the daily chart, TORN's price has slipped by approximately 45% since the Justice Department's notice about Tornado Cash, to reach $18.50 on Aug. 10. By contrast, the valuation of all the crypto assets had plunged merely 6% in the same timeframe.
TORN/USD daily price chart. Source: TradingView
Interestingly, TORN's selloff accompanied a spike in daily trading volumes, suggesting momentume.
TORN technicals suggest recovery
The downside move has pushed TORN price near a critical technical support.
Related: Anonymous user sends ETH from Tornado Cash to prominent figures following sanctions
TORN has been testing its $15-$18 range for a potential rebound due to its historical relevance as support. Notably, in January and June earlier this year, this level served as a springboard for TORN price to jump 275% and 100%, respectively.
TORN/USD three-day price chart. Source: TradingView
Therefore, a potential rebound move from the range could have TORN tes $32.50 as its next upside target, which coincides with the 0.236 Fib line as shown above. In other words, a 75% recovery by September 2022
On the other hand, a breakdown below the support range sends TORN's price to new record lows.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Gain a broader understanding of the crypto industry through informative reports, and engage in in-depth discussions with other like-minded authors and readers. You are welcome to join us in our growing Coinlive community:https://t.me/CoinliveSG
Add Comment
LoginLeave your comments
0 Comments
Earliest
Load more comments
More news about tornado cash price
- Ara attacker transfers 987 BNB to Tornado CashBullishBearish
- Tornado Cash developer Alexey Pertsev has been releasedBullishBearish
- Tornado Cash developer's appeal rejected by Dutch courtBullishBearish
- Tornado Cash code has been reuploaded to GitHubBullishBearish
- Tornado Cash Developer is Arrested in AmsterdamBullish1Bearish
- The Tornado Cash Discord server has been removedBullishBearish
- Gitcoin Has Suspended Tornado Cash GrantsBullishBearish
- US Treasury Sanctions Another Crypto Mixer – Tornado CashBullish3Bearish1
More news about tornado cash price
- Cointelegraph
Tornado Cash Token Loses 24% Of Value After Developer Arrest
TORN, the token of Tornado Cash, plummeted by nearly a quarter in the last 24 hours after Dutch authorities arrested ...
BitcoinistdYdX confirms blocking (and unblocking) some accounts linked to Tornado Cash
The platform said it has used compliance vendors to scan for and flag accounts potentially associated with illicit activities, including sanctions lists for many countries.
CointelegraphAnonymous user sends ETH from Tornado Cash to prominent figures following sanctions
It appears to be an ongoing prank to challenge the novel Tornado Cash sanctions.
CointelegraphTornado Cash Lianchuang GitHub Account Suspended, U.S. Treasury Department Blacklists Tornado Cash
Roman Semenov, co-founder of TornadoCash, tweeted that his GitHub account had been suspended after the U.S. Treasury Department’s sanctions announcement, and the Tornado Cash repository has also been deleted from GitHub.
链向资讯Circle freezes blacklisted Tornado Cash smart contract addresses
Stablecoin issuers can blacklist interactions with the Tornado Cash dApp on the Ethereum smart contract level.
CointelegraphHarmony Hackers Send Stolen Funds to Tornado Cash Mixers
Hackers appear to have turned down a $1 million bounty offer from the Harmony team to return $100 million stolen from the Horizon Bridge token bridge.
CointelegraphHarmony hacker sends stolen funds to Tornado Cash mixer
The exploiter seems to have rejected the Harmony team’s bounty offer of $1 million to return the $100 million stolen from the Horizon Bridge token bridge.
CointelegraphEthereum Privacy Protocol Tornado Cash to Launch on L2 Arbitrum
Once fully deployed, users will be able to conduct private transactions through the popular Tornado Cash mixer on Arbitrum's second layer network.
Cointelegraph