USD1, a U.S. dollar stablecoin linked to Donald Trump’s family through World Liberty Financial, briefly dipped from its $1 peg to $0.994. The developers cited a “coordinated attack” involving hacked accounts, negative influencer campaigns, and short positions against their native token, WLFI. Despite these efforts to destabilize it, they claim the peg held due to a redemption mechanism allowing USD1 holders to exchange tokens for U.S. dollars. However, it still traded slightly below its peg at $0.998. USD1 is backed 1:1 by U.S. government treasuries, dollar deposits, and cash equivalents and has a $5 billion market capitalization, although it trails USDT and USDC.
Trump-linked USD1 stablecoin wobbles as WLFI says it’s under ‘coordinated attack’
