Essence Finance Stablecoin Plunges 98% in 24 Hours, Sparks Rug Pull Allegations
At the time of publication, Essence Finance had not issued a statement about the incident or acknowledged its impact on the protocol’s operations
Early on Oct. 26, the U.S. dollar value of Essence Finance’s decentralized stablecoin, CHI, plunged by more than 90% after rumors emerged that more than $20 million of collateral had been removed. According to Geckoterminal data, the value of the stablecoin, which normally trades at par with the U.S. dollar, dropped by nearly 98% to $0.01338 in less than 24 hours. The huge drop has sparked allegations of a rug pull against the protocol’s developers. At the time of publication, Essence Finance had not issued a statement about the incident or acknowledged its impact on the protocol’s operations.
