Trump-Linked USD1 Stablecoin Briefly Depegs, WLFI Under Fire

USD1 Price Chart. Source: CoinGeckoWorld Liberty Financials Stablecoin Depeg Triggers Speculation

WLFI responded within hours. The company said attackers compromised several cofounder accounts, spread false information, and opened short positions to profit from panic selling.

Despite the rapid recovery, the incident triggered widespread concern across the crypto community.

A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos.

It didnt work.

Thanks to USD1s sound mint-and-redeem mechanism…

Some users compared the sudden depeg to early warning signs seen before the collapse of algorithmic stablecoins such as TerraUSD in 2022.

However, USD1 differs structurally. WLFI says it maintains full 1:1 reserves, unlike TerraUSDs algorithmic design, which relied on arbitrage mechanisms rather than direct asset backing.

Meanwhile, unverified reports circulated on social media claiming that Eric Trump deleted older promotional posts related to USD1 during the volatility.

Screenshots have circulated online, but no independent confirmation has verified these claims.

this is quite obviously a WLFI/bonk exposé

no coincidence that eric trump is deleting his WLFI posts as we speak

the trump administration is not only looting the treasury but also colluding with the worst criminals in the crypto space to squeeze out every penny they can

Separately, blockchain investigator ZachXBT said he plans to release findings later this week on alleged insider trading involving a major crypto company.

He did not name the firm. Still, some social media users speculated that WLFI could be involved. There is no evidence supporting this claim at the time of writing.

Stablecoins rely heavily on confidence. Even brief depegs can trigger rapid selling if users fear insolvency or reserve weakness.

USD1s quick recovery suggests that redemptions and liquidity mechanisms functioned as designed. Nevertheless, the incident reflects how quickly market sentiment can shift, especially for newer stablecoins tied to high-profile figures.