Following the U.S. government prohibiting the use of the 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 announcement. Monero and Zcash, which are the most prominent privacy coins, were able to recover their losses within two days. However, in the past 24 hours the market capitalization of the world’s top privacy coins has fallen by 3% over the previous day.
Although the top privacy coins have experienced some recovery, most of them suffered a market beating last week after OFAC sanctioned the crypto mixing service Tornado cash
Last week was a bad week for financial privacy advocates, as the U.S. government’s Office of Foreign Asset Control (OFAC) sanctioned the ethereum (ETH) mixing service Tornado Cash, and a great number of associated ETH-based addresses.
The banishment led to Github code removal and suspensions, a ‘celebrity dusting,’ the Tornado Cash Discord server deletion,Dutch police arrested Alexey Pertsev, a 29-year old developer.
However, there were no significant price hikes for any top privacy coins. Indeed, most privacy tokens went down after the U.S. government officially announced the ban.
Monero, the market leader in privacy coins by market capitalization (XMR), suffered a loss of 8.82% between the hours of the night on August 8 and the morning trading session on August 9. Zcash, (ZEC), lost 8.75% to the U.S. dollars in the same manner.
Large numbers of top privacy coins lost between 5% and 15% during the ban. However, many of the most valuable privacy crypto assets quickly recovered the lost funds around two days after the ban.
Monero is up 0.3% over the past week. Seven-day statistics reveal that Zcash’s value against the U.S. Dollar has increased by 5.9%. Even though the market capitalizations of privacy coins totaling $6.44 Billion fell by 3% over the previous day, it was still up 3%.
Although the market cap privacy coins are the least popular, they have had a lackluster performance compared with crypto assets like Ethereum (ETH). However, some privacy coins saw double-digit gains in the last seven days.
Double-digit gainers include Zclassic (ZCL), which surged 76% and zero (ZER), which rose by 74.5%. Lethean (LTHN), however, increased by 60.8%. Last week, privacy coins lost the most: navcoin dropped 40.4%, bitcoin public (BTCP) fell 26.3%, daps coin(DAPS), was down 19.7%.
How do privacy coins change in value following the ban of Tornado Cash by the U.S. government? Please comment below to let us know your thoughts on this topic.
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