Nothing unique about Tornado Cash as sanctions continue to pinch TORN

0

[ad_1]

Could it be worse for the already struggling crypto mixer Tornado Cash? Not just on the regulatory side, but even on-chain metrics have now revealed a depressing story. From monthly users to weekly deposits and withdrawals and much more…

Dying eye of this tornado

Crypto-mixer Tornado Cash has seen a significant drop in activity following US Treasury sanctions. Right from the start of unique users on Dune Analytics, the drop was significant.

Data from Dune reveals a significant drop in the number of unique users per week since the sanctions announcement in August 2022. In fact, September saw unique users fall well below 100.

Source: Dune Analysis

This is indeed a steep drop, to say the least. All-time highs in terms of unique users to potentially a permanent low.

Overall, monthly users fell by more than 50%, from over 2,600 in July to less than 1,000 the following month. This highlighted the drop of more than 50% in the number of users, as shown in the graph above.

Moreover, when deposits and withdrawals on a weekly basis were examined, a similar picture seemed to emerge. In fact, during the last week of September, weekly deposits and withdrawals amounted to $3.6 million and $5 million, respectively.

Source: Dune Analysis

Those numbers went from $190 million+ in the second quarter (for both segments) to the aforementioned numbers above.

Why always me

Well, that’s exactly the case. Tornado Cash seems to have become the #1 destination for cybercriminals looking to launder their ill-gotten funds. First, the platform had been used by the North Korean state-sponsored hacking group Lazarus Group. At the time, Treasury said Tornado Cash had been used to launder more than $7 billion since its inception.

That’s not all either, the TransitSwap hacker using Tornado Cash to move stolen funds as well.

The crypto community as a whole has suffered severe repercussions following this latest installment of Tornado Cash. For example, according to Messari, the USDC utility took a massive blow immediately following the Tornado Cash sanctions fiasco.

Finally, the price of the native token TORN has since dropped more than 20%. At press time, it was consolidating around the $6.26 mark on the price charts.

Ergo, the question – Better days ahead?


[ad_2]
Source link

Share.

Comments are closed.