Reports of a crisis of trust have emerged within the SCROLL ecosystem following a dramatic drop in the value of the Chii stablecoin, associated with the Essence Finance project. On October 26, the price of Chi plummeted by 98% to $0.01643, triggering concerns among investors and speculation of potential fraudulent activities related to its release.
Investors typically inject funds into a project, thereby boosting the value and liquidity of the token. However, in instances of a “Rug Pull”, creators of the project unexpectedly withdraw all funds from the liquidity pool once a substantial amount of investment has been secured. This sudden move results in a severe devaluation of the token and leads to investors losing their funds. Analogous to yanking a rug out from under someone, investors are left without support and their investments vanish.