World Liberty Financial, the crypto venture backed by President Donald Trump and his family, said today it fended off what it described as a multi-pronged assault on its digital asset ecosystem after its dollar-pegged stablecoin briefly lost parity with the greenback.
USD1, the firm’s flagship stablecoin and currently the fifth largest by market value at $4.8 billion, according to CoinGecko data, slid to roughly $0.98 on Binance early Monday before returning to full dollar equivalence within half an hour.
The company’s governance token, WLFI, fell nearly 8% during the brief depeg, before trimming some losses. At press time, the token was trading around $0.112, still down roughly 4% on the day.
The firm attributed the disruption to hackers who compromised X accounts belonging to co-founders, influencers paid to spread misleading claims, and traders who opened sizable short positions against WLFI to capitalize on the turmoil.
World Liberty credited its collateral structure and redemption process for the rapid stabilization, noting that USD1 holders can convert tokens directly to dollars at a one-to-one ratio.
Price aggregator CoinGecko recorded a smaller dip, with USD1 falling only to $0.994, rather than the deeper trough shown on Binance.
Source: https://cryptobriefing.com/usd1-stablecoin-attack/
