Essence Finance’s CHI Stablecoin Crashes 92% 💔

Essence Finance, part of the Scroll ecosystem, is facing significant challenges as its CHI stablecoin dramatically fell by over 92% within a single day, now valued at $0.077. This event has alarmed many investors who are now questioning the credibility of Essence Finance.

Concerns have been exacerbated by reports suggesting that approximately $20 million worth of collateral has disappeared, leading to suspicions that the project might be involved in a rug pull—a type of exit scam where developers abandon a project after securing substantial investments.

The gravity of the situation is further intensified by the lack of communication from the Essence Finance team, with their last update recorded on September 11. This silence has left investors in a state of uncertainty, unable to determine the project's current status or any future actions that might be undertaken to resolve the ongoing issues.

Essence Finance had undergone prior audits to assure its integrity and security, adding a layer of surprise to the rapid destabilization of its stablecoin. The collapse of CHI is a poignant reminder of the inherent risks within the cryptocurrency market, particularly concerning projects that are still in their developmental stages.