Essence Finance, the stablecoin project of the Scroll ecosystem, has raised serious concerns among investors. There was a dramatic 98% drop in the price of the project’s stablecoin, CHI, which raised suspicions of rugpull. The recent withdrawal of millions of dollars of collateral from the project has raised questions in the market about the sustainability of the project.
Sudden Drop in Price of Stablecoin CHI
According to GeckoTerminal data, on October 26, the price of the CHI stablecoin belonging to the Scroll ecosystem dropped by 98% during the day and is currently at $0.01643. Additionally, a further 33% drop occurred on the hour, causing increased negative sentiment among market participants.
According to Asian crypto journalist Wu Blockchain, $20 million worth of collateral was suspiciously withdrawn from the project. Essence Finance’s
Decline and Market Situation in SCR Token
Despite the negative developments in the stablecoin project, the Scroll (SCR) token has recently achieved success in being listed on major crypto exchanges such as Binance and Bybit. However, the problems experienced by the CHI stablecoin also led to a decrease of approximately 8% in the price of the SCR token and it is currently trading at $0.8274.
SCR’s transaction volume was recorded at $45,934,800 at the time of reporting and it was stated to have a total of 133 wallets. This is an important indicator in terms of the token’s market performance and investor confidence.
These developments regarding the project may have significant impacts on the future of the Scroll ecosystem and investors’ trust in such stablecoin projects. Market participants may start to become more cautious about the sustainability and reliability of projects.
Further information regarding future steps of the project and collateral withdrawals will be closely followed by investors. In this process, the management of the project and the statements of the relevant institutions will be decisive on the market dynamics.
Industry experts point out that crypto projects need to have a more transparent and reliable structure to avoid similar situations in the future. Investors are advised to always act by taking the risks into consideration.
The difficulties experienced by the project once again revealed the importance of security and sustainability issues in crypto markets. Investors are urged to be more careful and investigative when making future investments.
Investors continue to closely monitor the development of the project and market reactions. Such events offer important lessons about the volatility and risks of cryptocurrency markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
