The Essence Finance stablecoin project within the Scroll ecosystem has raised serious concerns among market participants. The price of its stablecoin, CHI, plummeted by a staggering 98%, leading to suspicions of a rug pull. Furthermore, recent withdrawals of millions of dollars in collateral from the project have only fueled doubts about its long-term viability.
The sudden decline in the price of the CHI stablecoin, which is associated with the Scroll ecosystem, has been alarming. According to data from GeckoTerminal, the price fell by 98% on October 26 and is currently trading at $0.01643. To make matters worse, there has been an additional 33% drop per hour, creating a growing sense of negativity among market participants.
Crypto journalist Wu Blockchain reported that $20 million worth of collateral was suspiciously withdrawn from the Essence Finance project. Additionally, the project’s X account has not shared any new content since September 11, only reposting previously made posts. This has intensified discussions and suspicions of a rug pull.
Despite the negative developments surrounding the stablecoin project, the Scroll (SCR) token has recently been listed on major crypto exchanges like Binance and Bybit. However, the issues with the CHI stablecoin have led to an approximately 8% decline in the SCR token’s price, which is currently trading at $0.8274.
As of now, the trading volume of SCR stands at $45,934,800, and it has a total of 133 wallets. This situation is an important indicator of the token’s market performance and investor confidence.
These recent developments within the project could have significant implications for the future of the Scroll ecosystem and investor confidence in stablecoin projects. Market participants may start to approach such projects with caution, carefully assessing their sustainability and reliability.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research. For more updates, you can follow us on Telegram, Facebook, Twitter, and Coinmarketcap.