Since the announcement on 8 August, one where the Office of Foreign Assets Control (OFAC) informed U.S. residents of its inclusion of Tornado Cash to its Specially Designated Nationals list, the cryptocurrency mixer’s native token has plummeted.
Exchanging hands at $9.04 per TORN at press time, it has dropped by 68% in the last 20 days, data from CoinMarketCap revealed.
Are the whales saying their final goodbyes?
According to Santiment, since the addition of Tornado to OFAC’s Specially Designated Nationals list and the consequential ban of its usage by American residents, the whales holding TORN tokens have gradually reduced their holdings.
TORN whales holding between 100 to 1,000,000 TORN tokens took to dissipating their holdings in the last 20 days. Interestingly, the percentage of whales holding 1,000,000 to 10,000,000 TORN tokens grew by 31% within the same period.
As per data from IntoTheBlock, the whales on the TORN network currently hold 9.39M TORN tokens representing 93.89% of the asset’s total supply. Worth noting, however, that in the last 30 days, whale holdings on the network have dropped by 8.33%.
Look, there is more
On the back of a significant price decline in the last 20 days, a plethora of TORN holders have been unable to turn a profit. The 7-day MVRV and the 30-day MVRV flashed negative values of -16.22% and -51.60%, respectively.
With the broader market under the shadow of the bears and uncertainty being the norm, there is no guarantee an MVRV correction to the upside will be possible for Tornado Cash.
Unsurprisingly, developmental activity on the TORN network has declined since the ban. Prior to the ban on 8 August, developmental activity on the TORN network was 4.61.
At the time of writing, developmental activity was pegged at 3.85 – Dropping by 16% in the last 20 days.
Although still a subject of immense social discourse, TORN’s social dominance and social volume have registered declines of 87% and 85%, respectively, since the aforementioned date.
Finally, the token has seen immense distribution since 8 August. According to Santiment, the supply of TORN tokens on exchanges grew sharply following the said announcement.
A spike in the percentage of the total circulating supply of a crypto-asset in known exchanges is indicative of a rise in short-term selling pressure. With a sustained increment of TORN tokens in exchange wallets, selling pressure rallies and price dips even further.