USD1, the dollar-backed stablecoin from World Liberty Financial, a project tied to the family of Donald Trump, briefly slipped from its $1 peg to around $0.994. The team claimed a coordinated campaign involving hacked cofounder accounts, paid influencers and short positions against its WLFI token aimed to trigger panic selling. Despite the pressure, the protocol said its redemption systеm allowed users to swap tokens 1:1 for dollars, helping stabilize the price, which later hovered near $0.998.
USD1 is issued with custody support from BitGo and is backed by short-term U.S. Treasuries, dollar deposits and cash equivalents, with reserve attestations conducted by Crowe. While the peg largely held, the episode highlights how even large stablecoins can face short-term volatility when targeted by market or social attacks.
