Crypto Economy’s Top Privacy Coins Take a Hit After US Govt Bans Tornado Cash

After the US government banned the use of Ethereum mixing service Tornado Cash, the crypto economy’s top privacy coins lost more than 8% in USD value the following evening after the ban was announced. Top privacy coins like Monero and Zcash recouped losses two days later, but over the last 24 hours, the top privacy coins by market cap are around $6.44 billion today, down 3% from on day before.

While the top privacy coins have rallied somewhat, most took a market hit last week when OFAC sanctioned crypto mixing service Tornado Cash

Last week was a bad week for financial privacy advocates as the US government’s Office of Foreign Asset Control (OFAC) sanctioned Ethereum (ETH) mixing service Tornado Cash and a large number of associated ETH-based addresses.

The ban resulted in Github code being removed and banned, a “celebrity dusting” of the Tornado Cash Discord server deletion, and Dutch law enforcement agencies arresting 29-year-old developer named Alexey Pertsev.

However, the ban did not result in any notable price increases for any of the top privacy coins, and indeed most of the leading privacy tokens went underground after the US government made the official announcement.

Crypto Economy's Top Privacy Coins Take a Hit After US Govt Ban Tornado Cash
XMR/USD 15-minute chart on August 15, 2022. Since the ban on August 8, privacy coins like XMR, ZEC and many others have been very volatile.

The top privacy coin by market cap, Monero (XMR), lost 8.82% during the 24-hour period from the late evening of August 8 through the early morning trading sessions of August 9. Zcash (ZEC) followed the same pattern, losing 8.75% against the US Dollar after the ban.

A wide sample of the top privacy coins by rating saw a similar pattern, losing between 5% and 15% after the ban. However, most of the top privacy crypto assets have recouped some of the losses that were posted about two days later last Monday.

Monero is up 0.3% since last week, and seven-day stats show zcash is up 5.9% against the US dollar. Although on Aug. 15, the market cap of all top privacy coins, at $6.44 billion, is down 3% from the previous day.

While the privacy coins with the largest market caps have posted weak gains relative to crypto assets like Ethereum (ETH), some privacy coins have seen double-digit gains over the past seven days.

Double digit gainers include zclassic (ZCL) which is up 76% for the week, Zero (ZER) is up 74.5% and lethean (LTHN) is up 60.8% for the week. The biggest losers in the privacy coin economy this week were Navcoin (NAV) down 40.4%, Bitcoin Private (BTCP) down 26.3% and Daps Coin (DAPS) down 19, 7%

tags in this story

$6.44 Billion, 3% Loss, Bitcoin Private, Daps Coin, Double Digits, Gains, Lethean, Losses, Market Caps, Markets, Monero, Monero (XMR), Navcoin, OFAC, Prices, Privacy, Privacy Coins, Privacy Token, Ban on Use, Ban, Sanctions, Tornado Cash, US Government, Ratings, xmr, Zcash, zcash (ZEC), zclassic, ZEC, Zero

What are your thoughts on privacy coins fluctuating in value after the US government banned Tornado Cash? Let us know what you think about this topic in the comment section below.

Jamie Redman

Jamie Redman is the news director at News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. As of September 2015, Redman has written more than 5,700 articles for News about today’s emerging disruptive protocols.

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