September 24, 2022

Crypto Economy’s Top Privacy Coins Hit after Tornado Cash Ban

The US government decided to impose a ban on Tornado Cash, an Ethereum mixing service and this announcement took its toll on the privacy coins that are available in the crypto economy.

The following evening saw these privacy coins lose more than 8% of their value in US dollars. Leading privacy coins like zcash and monero were able to recover their losses in two days.

However, the total market capitalization of these privacy coins saw a drop of 3% within 24 hours, which put it at a value of $6.44 billion.

Tornado Cash

The previous week turned out to be a really bad one for financial privacy advocates, after the announcement of the Office of Foreign Asset Control (OFAC) of the US Treasury.

The watchdog sanctioned Tornado Cash, which is a popular Ethereum mixing service, along with a number of addresses based on Ethereum.

There were several consequences of the announcement, including celebrity dusting, deletion of the Tornado Cash Discord server, and the suspensions and removal of Github code.

Most importantly, Dutch authorities also made an arrest of 29 year old Alexey Pertsev, who they believe is the developer of Tornado Cash.

Privacy coins

The top privacy coins did not see any significant increase in their prices following the ban. As a matter of fact, most of them nosedived after the official announcement from the US government.

Monero (XMR) is the top privacy coin in terms of market capitalization and it fell 8.82% in late trading sessions on August 8th, which continued till August 9th.

The same pattern could be seen in ZCash (ZEC), which suffered losses of 8.75% in USD value after the ban announcement.

A wide array of top privacy coins also underwent a similar losing trend in terms of valuation and they amounted to somewhere between 5% and 15%.

The losses had been recorded last Monday and many of the top privacy coins were able to regain some of them in a matter of two days.

Recovery

There was a 0.3% gain in Monero, after its decline in the previous week, and weekly statistics indicate that a gain of 5.9% was recorded by zCash against the US dollar.

However, the market capitalization of the privacy coins on August 15th stood at $6.44 billion, which was a drop of 3% as compared to a day earlier.

Some privacy coins that have the largest market capitalizations have recorded lackluster gains, as opposed to cryptocurrencies, such as Ethereum (ETH).

However, there are some privacy coins that have recorded increases in the double-digits in the last seven days.

Some of the privacy coins that have seen gains in double digits include zclassic (ZCL), which rose by 76%. A 74.5% increase was also recorded in zero (ZER) this week.

Likewise, a 60.8% rise was seen in Lethean (LTHN). As far as the biggest losers in the privacy coin economy are concerned, navcoin (NAV) was leading the pack this week.

It lost 40.4%, while a 26.3% drop was seen in bitcoin private (BTCP) and a 19.7% fall was recorded in daps coin (DAPS).

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