Tornado Cash [TORN]: Is more trouble incoming after the OFAC’s announcement

ambcrypto.com:

Since the announcement on 8 August, one where the Office of Foreign Assets Control (OFAC) informed U.S. residents of its inclusion of Tornado Cash to its Specially Designated Nationals list, the cryptocurrency mixer’s native token has plummeted.

Exchanging hands at $9.04 per TORN at press time, it has dropped by 68% in the last 20 days, data from CoinMarketCap revealed. 

According to Santiment, since the addition of Tornado to OFAC’s Specially Designated Nationals list and the consequential ban of its usage by American residents, the whales holding TORN tokens have gradually reduced their holdings. 

TORN whales holding between 100 to 1,000,000 TORN tokens took to dissipating their holdings in the last 20 days. Interestingly, the percentage of whales holding 1,000,000 to 10,000,000 TORN tokens grew by 31% within the same period.

Source: Santiment

As per data from IntoTheBlock, the whales on the TORN network currently hold 9.39M TORN tokens representing 93.89% of the asset’s total supply. Worth noting, however, that in the last 30 days, whale holdings on the network have dropped by 8.33%.

Source: IntoTheBlock

On the back of a significant price decline in the last 20 days, a plethora of TORN holders have been unable to turn a profit. The 7-day MVRV and the 30-day MVRV flashed negative values of -16.22% and -51.60%, respectively.

With the broader market under the shadow of the bears and uncertainty being the norm, there is no guarantee an MVRV correction to the upside will be possible for Tornado Cash. 

Source: Santiment

Unsurprisingly, developmental activity on the TORN network has declined since the ban. Prior to the ban on 8 August, developmental activity on the TORN network was 4.61.

At the time of writing, developmental