A stablecoin linked to the Trump family's cryptocurrency venture, USD1, briefly slipped below its dollar peg Monday. The company, World Liberty Financial, claims it repelled a "coordinated attack" involving hacked social media accounts and disinformation campaigns.
At approximately 8:15 am ET, USD1 fell from near its $1 value to as low as $0.98 on the Binance exchange before recovering within 30 minutes. Around the same time, World Liberty's native token, WLFI, dropped about 7%.
World Liberty announced the incident was a deliberate attempt to undermine trust, stating their systems operated as designed. The company claims attackers hacked co-founder accounts and used paid influencers to spread negative sentiment, alongside massive short positions on WLFI.
USD1 is currently the fifth-largest stablecoin globally, with a market capitalization of $4.93 billion.