coindesk.com
$USD1, the U.S. dollar stablecoin of World Liberty Financial — a crypto protocol with close links 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 to as low as $0.994 during the day, some 0.6% from its intended $1 anchor, CoinGecko data shows.
In a Monday X post, the team behind $USD1 said multiple cofounder accounts were hacked, influencers were paid to sow doubt, and short positions were opened against the protocol’s native token, WLFI, in what they framed as a deliberate effort to stir panic and profit from it.
"It didn’t work," the post said, saying that a redemption mechanism that allows $USD1 holders to exchange their tokens for an equal amount of U.S. dollars as the reason the peg held firm.
However, the token still traded at $0.998, some 0.2% below its intended $1 price anchor, CoinGecko shows, which gathers price data from exchange pairs.
$USD1, issued in partnership with crypto custodian BitGo (BITG) is among the largest dollar-backed stablecoins. It has a $5 billion market capitalization, but it still trails major players like Tether's $USDT $USDT$1.0002 and Circle's (USDC).