A tornado forms during a severe thunderstorm – And that right now above the head of a famous person blender cryptocurrency, Tornado Cash is far from over.
Free fall for Tornado Cash
Tornado hurts. In just a few days, transactions on the platform decreased by almost 80%. And given the turmoil it is in, we can fear the worst in the days to come.
Only 6 million dollars were deposited in the protocol from the beginning of the week, instead of in 40 million on average which are processed weekly.
Users fleeing the eye of the storm are also withdrawing their cryptocurrencies en masse, preferring less (or no) anonymization to risk being associated with the Tornado protocol. Close 15% the funds have already been withdrawn, in an amount greater than 62 million dollars. Of this total, almost 15 million was withdrawn within 3 hours after Tornado Cash was blacklisted.
Add to these direct losses the fact that Krug froze on purpose $75,000 in USDC. DYDX has already started blocking accounts that used the mixing protocol. The same Vitalik Buterin he finds himself at the front of the stage due to the use of the platform.
Several users who support Tornado have had fun using it to send small transactions list of famous people as Zuckerberg, Shaq or jimmy fallon. All these small shipments are a sign of support for the tornado. However, this is unfortunately not enough to compensate for the losses incurred since the beginning of the week.
Obviously, Tornado’s adventure is not over. The protocol (or another that will emerge) will manage to come back, but when? And how? The money laundering excuse is so easy to use terminate the right to anonymitythat we may be moving towards a complete ban on such platforms.
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