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Chi USD Stablecoin Depreciates in Hours

Chi USD Stablecoin Depreciates in Hours

HappyCoinNewsHappyCoinNews2024/10/28 21:22
By:HappyCoinNews

Steyblecoin Chi USD (CHI), issued by startup Essence Finance, has become almost completely worthless in a matter of hours.

On October 26, the Chi USD rate became untied from $1 and suddenly went to hell. As a result of a powerful asset dump fell in price to $0,0088, which is more than 99% lower than the level before the start of the downward trend.

Chi USD Stablecoin Depreciates in Hours image 0

Chi USD Price Crash

Members of the crypto community have been rushing to dump CHI coins after the value of the digital assets that provide stability to the token rate dropped decreased by $20 million. According to the data provided on the Chi Protocol website, the volume of reserves supporting the price of CHI is $222, and the capitalization level of the stablecoin is estimated at $884. That is, the lion's share of the collateral funds has evaporated from the crypto storage.

The creators of Chi USD from Essence Finance have not been active on the X social network, which is banned in Russia, since October 14, so they are suspected of committing a fraudulent scheme Rug pull . Most likely, the creators of the cryptocurrency themselves withdrew the reserves that ensured the stability of the CHI rate, thereby collapsing the price of the coin.

Additionally, the Essence Finance website no longer allows you to exchange Chi USD for USD Coin (USDC) at a 1:1 ratio, as originally intended. When attempting to do so, a message appears stating that CHI is too expensive, despite the fact that even on the Essence Finance portal the stablecoin is valued at only $0,009.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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