Suspicions of a major scam in this Altcoin, with prices dropping by 98%.
The price of a stablecoin project in the Scroll ecosystem dropped by 98 percent overnight, raising suspicions of fraud.
The Scroll ecosystem is embroiled in controversy after the Essence Finance project, a stablecoin project within this network, was suspected of a rug pull.
The stablecoin CHI of Essence Finance has plummeted over 98% in just 24 hours, from a high to $0.077, amid concerns that over $20 million in collateral may have been stolen.
The last communication from the project was a tweet on September 11, further increasing suspicion.
Previously, the audit report of Essence Finance was linked to FEI Protocol V2 and is currently under review due to this incident.
The sharp decline in the value of CHI, along with the disappearance of a large amount of collateral, has left many investors bewildered.
The incident with Essence Finance has heightened security concerns in the decentralized finance (DeFi) sector, especially as projects on layer 2 networks like Scroll are rapidly developing.
In the same week, Scroll, a layer 2 network on Ethereum, launched the SCR token through a highly anticipated airdrop.
While it brings excitement, the airdrop has received mixed feedback from recipients. According to information from the official blog, Scroll has allocated 5.5% of the total SCR supply, equivalent to 55 million tokens out of a total of 1 billion tokens, to contributors and early users.
Of this, 40 million SCR was allocated to on-chain participants who accumulated 200 or more Scroll Marks, a score awarded for interaction with the network.
Additionally, 1% of the total tokens are evenly distributed to eligible wallets, while 0.5% is distributed as rewards for users meeting certain criteria.
