WLFI Slips After Eric Trump Retweet Deletion, USD1 Depegs

Key highlights:

• WLFI saw a sharp short-term drop of over 8% after Eric Trump deleted a retweet linked to new USD1 trading pairs, showing how sensitive the token is to public signals.
• The USD1 stablecoin briefly slipped below its dollar peg to around $0.98 before recovering close to parity, indicating temporary market instability.
• Binance’s 235M WLFI airdrop for USD1 holders run from February 20, 2026 to March 20, 2026.

Donald Trump’s son Eric Trump briefly shook market sentiments around World Liberty Financial (WLFI), leading to a short drop in price and a temporary depegging of its stablecoin, USD1. As per reports, Eric Trump, who is also the co-founder of the WLFI, removed a retweet of an earlier post from the official World Liberty Financial account. The post reportedly stated that ‘more USD1 trading pairs would be listed on Binance’.

WLFI Slips Following Deletion of Eric Trump Retweet

Shortly after the retweet was deleted, the WLFI token fell by more than 8 percent in a brief move. The price dropped to around $0.111, and at one point touched a low near $0.107 USDT. Over a 24-hour period, the token recorded a decline of about 5.37 percent. Trading activity also picked up during the period, with volume rising sharply to more than $338 million, an increase of over 86 percent compared with the previous day.

Not just thus, the project’s stablecoin, USD1, also saw a short disruption. It slipped below its dollar peg and traded at around $0.9802 USDT before recovering toward $0.9966 USDT. 

Despite the deletion of the retweet, Eric Trump’s personal profile still lists the official World Liberty Financial account. Eric has also kept several earlier posts that reference the project, suggesting continued association.

The price volatility came days after Binance had just announced a new incentive program for USD1 holdings. The exchange said it would launch an airdrop campaign for the users who hold World Liberty Financial USD. The total reward pool for the program stands at 235 million WLFI tokens.

The airdrop campaign is scheduled to run from February 20, 2026 to March 20, 2026. During this period, eligible users who hold USD1 in supported accounts will receive WLFI rewards on a weekly basis. The first distribution is planned for March 4 and will cover balances recorded between February 20 and February 27. After that, rewards will be distributed every Friday until the end of the campaign.

Each week, around 58.75 million WLFI tokens will be allocated among participants. Rewards will be credited directly to users’ spot accounts on Binance. The exchange said it will take multiple balance snapshots each hour, and the lowest daily USD1 balance will be used to calculate rewards for that day.

Binance also clarified that certain balances will be adjusted in the calculation. USD1 obtained through borrowing other stablecoins will face a 70 percent haircut after liabilities are considered. Assets borrowed through loans or margin positions will not count toward qualifying balances.

World Liberty Financial has been grabbing attention in recent months due to several developments around ownership and funding. The project drew attention after reports that an Abu Dhabi-based firm, Aryam Investment, acquired a 49 percent stake in the company for about $500 million. The firm is backed by Sheikh Tahnoon Bin Zayed Al Nahyan. The investment led to questions and political debate, which were later dismissed by Donald Trump.

In a statement earlier this month, Donald Trump said he was not aware of the details of the investment and that his sons were handling the business side of the project. He added that his current focus remains on national responsibilities rather than business ventures.

Even with the recent price drop, WLFI is trading near $0.111 after a short-term decline of about 4.9 percent over the past hour.