Concerns mount over the Essence Finance stablecoin, CHI, following a staggering 98% price drop. This dramatic fall has sparked fears of possible fraudulent activities, particularly a rug pull, as millions of dollars were withdrawn from the project, raising red flags among market participants.
What Caused the CHI Price Drop?
Recent data from GeckoTerminal indicates that CHI’s value plummeted to just $0.01643 on October 26, with an alarming 33% decrease occurring within an hour. This sudden decline has escalated existing apprehensions within the trading community.
How is the SCR Token Affected?
In spite of these setbacks, the Scroll (SCR) token recently achieved listings on prominent exchanges like Binance and Bybit. However, the instability surrounding the CHI stablecoin led to an 8% plunge in the SCR token’s price, currently at $0.8274, reflecting the broader market’s unease.
- CHI stablecoin price dropped by 98%, raising concerns.
- Withdrawal of $20 million in collateral heightens suspicions.
- SCR token faces an 8% decline despite new exchange listings.
- Investors showing increased caution regarding stablecoin reliability.
The ongoing turmoil within the Essence Finance ecosystem could significantly impact both the reputation of similar projects and overall market trust. Participants are likely to approach future stablecoin ventures with heightened scrutiny.