THE DAILY ENCRYPT

October 3, 2022

A Huge Drop in Demand for Deposits as Tornado Cash Users Look for Alternatives

Users have stopped depositing in the protocol since the sanction against Tornado Cash. Many users have also withdrawn their funds....

Users have stopped depositing in the protocol since the sanction against Tornado Cash. Many users have also withdrawn their funds.

After Tornado Cash was approved by the US Treasury, there was a significant drop in deposits and an increase of withdrawals.

According to data from The Block Research, only $6 million has been transferred into the protocol since the sanctions were lifted. This is a 78.5% decrease compared to the week before.

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Users have also rushed to withdraw funds, leading to increased volumes. Sixty-two million dollars has been withdrawn by the protocol since the announcement of the sanctions. This decreases the crypto stored in its addresses by 15%. In the first three hours, $14.7 Million was withdrawn.

Other impacts have been had on protocol users by the sanctions. Circle has frozen $75,000 USDC, which was in the addresses. Crypto infrastructure services have begun limiting access to this protocol and the decentralized exchange (dYdX) has begun blocking accounts that are tied to it.

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One user sent small amounts of Ethereum from sanctioned wallets into wallets belonging to celebrities like Randi Zuckerberg, Logan Paul and Shaq to protest the bans.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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