USD1, the dollar-linked stablecoin issued by World Liberty Financial — a crypto venture tied to the family of U.S. President Donald Trump — briefly slipped off its $1 peg on Monday as the team alleged a coordinated campaign against the protocol.
According to pricing data from CoinGecko, the token dropped to an intraday low of $0.994, roughly 0.6% below its intended dollar value. It later recovered most of the losses but continued to trade slightly under peg at around $0.998.
In a statement posted on X, the developers claimed several co-founder accounts had been compromised, influencers were paid to cast doubt on the project, and traders opened short positions against WLFI, the protocol’s native token. The team described the activity as an orchestrated attempt to spark fear and profit from volatility.
They said the effort ultimately failed, crediting USD1’s redemption feature — which allows holders to swap tokens for U.S. dollars on a one-to-one basis — for keeping the peg largely intact.
USD1 is issued in partnership with digital asset custodian BitGo and is backed 1:1 by short-term U.S. Treasuries, dollar deposits and other cash equivalents. Monthly reserve attestations are signed by consulting firm Crowe, according to BitGo.
With a market capitalization near $5 billion, USD1 ranks among the larger dollar-backed stablecoins, though it remains smaller than industry heavyweights such as Tether’s USDT and Circle’s USDC.
