Scroll

Stablecoin

2024

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. 
<a href="https://www.qubetics.com/?utm_source=TBJ&amp;utm_medium=postBANNER" target="_blank" rel="noopener nofollow"><img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-51679 aligncenter" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/10/Qubetics-is-728x90-1-3.jpg" alt="Essence Finance Stablecoin Crashes 98%: Rug Pull Concerns Loom = The Bit Journal" width="728" height="90" title="Essence Finance Stablecoin Crashes 98%: Rug Pull Concerns Loom 27"></a> 
<h2 id="what-happened-to-scroll-s-stablecoin-project">What Happened to Scroll’s Stablecoin Project?</h2> 
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. 
<blockquote class="twitter-tweet"> 
 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) <a href="https://twitter.com/WuBlockchain/status/1850030908444987403?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">October 26, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
<h2 id="scroll-scr-also-takes-a-hit">Scroll (SCR) Also Takes a Hit</h2> 
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. 
<img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-53700 aligncenter" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/10/Screenshot-2024-10-26-at-12.26.28 PM-768x464-1.png" alt="Essence Finance Stablecoin Crashes 98%: Rug Pull Concerns Loom = The Bit Journal" width="768" height="464" title="Essence Finance Stablecoin Crashes 98%: Rug Pull Concerns Loom 28"> 
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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Essence Finance Stablecoin Crashes 98%: Rug Pull Concerns Loom

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The Bit Journal

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