The Essence Finance stablecoin project within the Scroll ecosystem has triggered widespread alarm. Essence’s stablecoin, CHI, suffered a sharp 98% price drop, sparking fears of a potential rug pull. Reports of multimillion-dollar collateral withdrawals just before the crash have only intensified speculation among investors.
What Happened to Scroll’s Stablecoin Project?
According to GeckoTerminal, on October 26, CHI plummeted to $0.01643, experiencing a 98% drop with an additional 33% hourly decline. This dramatic fall has led investors to question CHI’s future and created a cloud of distrust around the Scroll ecosystem. The news surfaced after Asia-based crypto source Wu Blockchain reported a $20 million collateral withdrawal from the project.
Further fueling the rumors, Essence Finance’s X (formerly Twitter) account has been mostly silent since September 11, with no original posts since then—only retweets. This lack of communication has heightened concerns and led to growing speculation about a possible rug pull. Despite this, CHI’s 24-hour trading volume remains around $45.9 million, with a total of 133 investors. These figures suggest that interest lingers, albeit shadowed by significant distrust.
Scroll ecosystem stablecoin project Essence Finance is suspected of rugpulled, its stablecoin CHI has fallen by more than 92% to $0.077 in the past 24h, more than $20 million of collateral is suspected to have been removed. The last tweet was posted on September 11. The audit…
— Wu Blockchain (@WuBlockchain) October 26, 2024
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Scroll (SCR) Also Takes a Hit
The Scroll ecosystem’s main token, SCR, built on zero-knowledge rollup technology, also took a major blow. Despite previously attracting investor interest on major exchanges like Binance, Bybit, and Coinbase, SCR faced an 8% drop within 24 hours, hitting $0.8274. The token’s daily low and high were recorded at $0.7844 and $0.9105, respectively.
These events have spotlighted the Scroll project while casting doubt on its reliability. Investor confidence in CHI’s future as a stablecoin has visibly eroded, reflecting concerns that the project may indeed be a rug pull.
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