Stablecoin project “Chi” is reported to have a $20 million rug pull

The Scroll ecosystem's stablecoin project, Essence Finance, is under scrutiny after its stablecoin CHI experienced a dramatic 98% price crash. This has raised suspicions of a potential rug pull, especially since over $20 million worth of collateral was reportedly removed from the project on October 26, 2024.

The stablecoin CHI, which is part of the Scroll ecosystem issued by Essence Finance has recently experienced significant turbulence.

This USD-based stablecoin initially gained traction within the Scroll ecosystem, particularly through its association with decentralized exchanges like Tokan.

However, the value of CHI plummeted by over 90% according to data from GeckoTerminal, raising suspicions of a potential "rug pull." Reports indicate that more than $20 million in collateral may have been removed, leading to this dramatic collapse in its price.

As of now, CHI's backing is in question, and many investors are concerned about the disappearance of its reserves. The total supply of CHI was around 18 million tokens, with assets worth approximately $26 million prior to this crash.

As of now, Essence Finance does not come out to say anything on X.