Tornado Cash is one of many notable tokens unlocks expected for February. However, were there any effects on TORN prices?
Tornado Cash unlocked 175,000 tokens this week as part of its vesting and unlocking program. Furthermore, TORN prices have risen sharply in anticipation of the event during the last week. At the pricing in effect on February 6, the unlock was worth around $1.12 million.
According to the Token Unlocks tracker, the next Tornado Cash unlock event will be place in 28 days, on or around March 8.
Every month, the Ethereum privacy protocol unlocks 1.75% of its total supply.
Token Unlocks claimed that there were around $48 million in unlocks during the last week:
Tornado Cash has currently unlocked 60.5% of its supply (about 40 million tokens). It has a market value of roughly $10 million as a result of this.
According to the Unlocks app, token unlocks are frequently used by projects to “release locked shares into the crypto market over a defined period of time.” The goal of this procedure is to align incentives for all parties.
The current Tornado Cash payout contains 55% for governance tokens and 30% for the team and investors. In addition, 10% is allocated to anonymity mining and 5% to the airdrop.
Furthermore, token distribution varies widely amongst projects. Some have no venture capital, investor, or treasury allocation, while others devote the majority of their resources to the core team and early investors.
Tokenomics inspired heavily by venture capital might have a negative impact on decentralization. Aptos and Uniswap are two notable venture-backed projects. One investor (a16z) recently used its massive voting power to downvote a governance proposal in favor of another of its preferred investments.
The native token of the privacy protocol has had a strong week, gaining 15.5% in the last seven days. Furthermore, TORN is up 5.2% on the day to $6.64 at the time of publication.
TORN has gained 67% in the last month, surpassing the majority of its crypto peers. However, the token is still down 98.5% from its all-time high of $436 in February 2021.
Tornado Cash has been targeted by global officials for alleged money laundering and criminal activity.
Tornado Cash was sanctioned by the US Treasury Department in August 2022, accusing it of laundering billions of dollars.
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