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The USD1 stablecoin, issued by the crypto lending platform World Liberty Financial, which is owned by the family of U.S. President Donald Trump, briefly lost its peg to the dollar, dropping to $0.994.
The management of World Liberty Financial attributed the decline to unauthorized access by unknown individuals to the social media accounts of the platform’s co-founders, describing it as a “deliberate attempt by malicious actors to destabilize USD1.” World Liberty Financial claims that unnamed individuals utilized malware and that someone unspecified may have compensated them for disseminating certain information, as well as for opening significant short positions against WLFI. World Liberty Financial did not provide evidence to support this assertion.
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The platform’s team assured that the smart contracts and wallets associated with WLFI or USD1 tokens were not compromised. All USD1 tokens are secure, collateral is intact, and the infrastructure is functioning normally, the developers confirmed. The token is currently trading at $0.999.
The market capitalization of USD1, the fifth-largest dollar-pegged stablecoin, decreased by 5.5% to $4.7 billion. In comparison, Tether’s USDT has a market cap of $183.6 billion, while Circle’s USDC is approximately $74.7 billion. The reserves of USD1 consist of U.S. Treasury bills and their cash equivalents, which are held and managed by BitGo Trust.
In September of last year, World Liberty Financial launched the USD1 stablecoin on the Solana blockchain, citing the network’s high transaction speeds as the reason for the choice. Previously, USD1 had been integrated into the Ethereum, BNB Chain, and Tron blockchains.
