In a riveting turn of events, Scroll ecosystem’s stablecoin project Essence Finance raised substantial investor concerns across the broader market on Saturday amid rugpull speculations. Notably, the project is suspected of being rug pull as its stablecoin, CHI, witnessed a phenomenal price crash of 98%. Further, with millions in collateral removed from the project recently, crypto market participants are strongly anticipating the stablecoin project to be a rug pull.
Scroll Ecosystem Stablecoin Project Essence Finance Raises Market Concerns
According to GeckoTerminal data on October 26, Scroll ecosystem’s stablecoin CHI price crashed by 98% intraday and is currently sitting at $0.01643. Further, the coin witnessed a 33% drop within the hourly duration, garnering further bearishness among market participants.
Notably, the downside trajectory comes riding the back of over $20 million worth of collateral suspected to have been removed from the project, per Asian crypto reporter Wu Blockchain. Further, it’s worth mentioning that Essence Finance’s X handle last posted on September 11, after which only reposts appeared, sparking additional market discussions amid the ongoing rugpull saga.
The current trading volume for stablecoin totaled $45,934,800 at the time of reporting. Further, the total number of holders, per GeckoTerminal data, was recorded as 133.
Ecosystem Encounters Setback Despite Recent Developments
Besides, the zero-knowledge rollup crypto Scroll (SCR) faced quite a setback with its stablecoin project encountering market sentiments of being rugpull. On the other hand, recent market developments had aided the project in gaining significant traction across the industry.
CoinGape Media reported that SCR secured listings on major crypto exchanges recently. As per the report, the token secured listing on Binance and Bybit, whereas Coinbase commenced perp-trading for the same. These listings aided the project in garnering substantial investor attention across the broader market recently. However, the latest CHI stablecoin rugpull saga has presented the crypto project with scrutiny among traders and investors globally.
It’s also worth mentioning that SCR price dipped nearly 8% in the past 24 hours and traded at $0.8274. Its intraday low and high were recorded as $0.7844 and $0.9105, respectively.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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