USD1, the US dollar stablecoin of World Liberty Financial — a crypto protocol with close ties to President Donald Trump’s family — slipped from its $1 peg on Monday amid what the project’s developers described as a “coordinated attack” against the protocol.
The token fell as low as $0.994 during the day, about 0.6% from its intended $1 anchor, CoinGecko data shows.
In a Monday X post, the team behind USD1 said several co-founder accounts were hacked, influencers were paid to cast doubt, and short positions were opened against the protocol’s native token, WLFI, in what they said was a deliberate effort to incite panic and profit from it.
“It didn’t work,” said the post, which said a redemption mechanism that allows USD1 holders to exchange their tokens for an equal number of US dollars caused the bond to stick.
However, the token was still trading at $0.998, about 0.2% below its intended $1 price anchor, according to CoinGecko, which aggregates price data from exchange pairs.
USD1, issued in partnership with crypto custodian BitGo (BITG), is among the largest dollar-backed stablecoins. It has a market cap of $5 billion, but it still trails big players like Tethers USDT and Circle’s (USDC).
