The Essence Finance stablecoin project within the Scroll ecosystem has raised serious concerns among market participants. The price of its stablecoin, CHI, suffered a drastic 98% plunge, raising suspicions of a rug pull. Furthermore, recent withdrawals of millions of dollars in collateral from the project have only deepened doubts about its long-term viability.
Sudden Plummet in CHI Stablecoin Price
According to data from GeckoTerminal, the price of the CHI stablecoin, linked to the Scroll ecosystem, plummeted by 98% on October 26th and is currently trading at $0.01643. Additionally, there has been a further 33% hourly drop, exacerbating the negative sentiment among market participants.
As reported by the crypto journalist Wu Blockchain, a suspicious $20 million worth of collateral was withdrawn from the project. Furthermore, Essence Finance’s X account has not posted any new content since September 11th, only sharing previously made posts, fueling discussions about a potential rug pull.
Decline in SCR Token and Market Conditions
Despite the negative developments surrounding the stablecoin project, the Scroll (SCR) token has recently managed to be listed on major cryptocurrency exchanges such as Binance and Bybit. However, the issues faced by the CHI stablecoin have led to an approximately 8% decline in the SCR token’s price, which is currently trading at $0.8274.
At the time of reporting, SCR’s trading volume stood at $45,934,800, with a total of 133 wallets. This situation serves as a crucial indicator of the token’s market performance and investor confidence.
These developments regarding the project could have significant implications for the future of the Scroll ecosystem and investor trust in stablecoin projects of this nature. Market participants may adopt a more cautious approach when considering the sustainability and reliability of such projects.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
