Essence Finance Rug Pull Suspected as CHI Drops 92% in 24 Hours

Key Points:

• Essence Finance rug pull suspected after CHI plunges by over 92% to $0.077.
• Allegedly, over $20M in collateral is missing, with no project updates since September 11.

Essence Finance Rug Pull suspected as CHI drops over 92% in 24 hours; more than $20M in collateral reportedly removed. The last project update was on Sept 11.

Essence Finance Rug Pull Suspicions Amid $20M Collateral Loss

The project in question, operating in the Scroll ecosystem, is known as Essence Finance, after its stablecoin CHI fell more than 92% in the last 24 hours to $0.077. Such a fall certainly suggests a possible rug pull that means removing over $20 million worth of collateral from the project. There have been no statements regarding this, and their last tweet was from September 11; thus, the credibility and intention of the project are somewhat doubtful.

The project was reportedly audited with FEI Protocol V2, which should have attested to its security and stability. As a result, CHI’s recent rapid collapse and the sudden asset drain there triggered increased speculation about the project’s trustworthiness. Without clarity on how it works, investors will be wary because such a lack of transparency will raise question marks over the safety of funds in the DeFi projects alone, let alone within new ecosystems.

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