$TORN Soars 400% After Court Ruling; But These 3 Privacy Coins Could Go Higher
By Pratik Bhuyan November 27, 2024
Summary
- A U.S. court overturned sanctions on Tornado Cash, ruling that smart contracts cannot be considered "property," leading to a 400% surge in $TORN's price.
- Privacy-focused coins like Monero offer default anonymity, while Zcash combines optional privacy with regulatory compatibility.
- Railgun ($RAIL) focuses on integrating privacy into existing DeFi protocols, allowing private interactions with platforms like Uniswap and Aave without creating a new blockchain.
Introduction
The crypto world is buzzing after a U.S. appeals court overturned sanctions on Tornado Cash—a privacy protocol that was accused of facilitating over $7 Bn in money laundering. This staggering figure includes $455 million allegedly linked to North Korea’s infamous Lazarus Group.
The ruling centred on a crucial point: once developers relinquish control of a smart contract, they are no longer liable for its use. The court determined that smart contracts themselves—being immutable lines of code—cannot be considered “property” under U.S. law. This decision caused Tornado Cash’s governance token, $TORN, to surge by over 400%, trading at nearly $19 following the announcement.
Why Did $TORN Rally So Hard?
This price explosion was fueled by optimism that Tornado Cash could stage a comeback. The court's decision effectively legitimizes its decentralized privacy model by ruling that code itself cannot be sanctioned. While this ruling doesn’t shield bad actors misusing the platform, it reopens the debate around privacy protocols and their role in DeFi.
However, the $TORN rally also underscores the speculative nature of crypto markets. With the token still grappling with legal and regulatory uncertainties, long-term sustainability is uncertain. If you're looking for privacy-focused projects with potentially stronger fundamentals and adoption, here are three contenders to watch.
1. Monero ($XMR): Privacy That’s Proven
Monero is the OG of privacy coins, and for good reason. Its blockchain is purpose-built for anonymity, using stealth addresses, RingCT, and obfuscated transaction amounts. This means your transactions are practically untraceable. Unlike Tornado Cash, Monero doesn’t rely on Ethereum or external protocols—it’s private by design.
Why it could outperform: With regulators tightening their grip on crypto, Monero’s consistent focus on privacy makes it a favorite for those who value their financial freedom.
2. Zcash ($ZEC): The Privacy-Optional Powerhouse
Zcash gives users the best of both worlds: transparent transactions for those who want accountability and shielded ones for privacy enthusiasts. This flexibility, powered by its zk-SNARK cryptography, makes Zcash appealing to institutional users and privacy-focused individuals alike.
Why it could shine: Zcash is constantly evolving, with scalability upgrades and growing adoption in regions where privacy is essential. Plus, its ability to comply with regulations while protecting user data makes it stand out.
3. Railgun ($RAIL): A Privacy Layer for DeFi
Railgun is an innovative privacy solution designed specifically for the decentralized world of crypto. It enables shielded transactions and private wallet balances across Ethereum & other EVM-compatible chains. What sets Railgun apart is its focus on allowing users to maintain privacy while still interacting with public DeFi protocols like Uniswap or Aave.
Why it’s exciting: Unlike Monero or Zcash, Railgun doesn’t rely on building a new blockchain. Instead, it integrates privacy into existing decentralized systems. This makes it a perfect fit for the booming DeFi market, offering users a way to protect their identity and activity without leaving their favorite protocols.
Why Privacy Coins Are More Than a Fad
$TORN’s rally shows that privacy still holds immense value in crypto. But it also highlights the risks of investing in projects that rely on legal victories to sustain their relevance. Monero, Zcash, and Railgun, on the other hand, have built their ecosystems around robust privacy tech rather than court rulings.
In a time where digital privacy matters more than ever, these coins could thrive as the demand for secure, private transactions continues to grow.
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