World Liberty Financial’s USD1 stablecoin, a crypto protocol with close ties to President Donald Trump’s family, fell from its $1 peg on Monday amid what the project’s developers described as a “coordinated attack” on the protocol.
The token fell to $0.994 during the day, down about 0.6% from its expected $1 anchor, according to CoinGecko data.
In a Monday
“It didn’t work,” the post said, citing a redemption mechanism that allows holders of $1 to exchange their tokens for the same amount of U.S. dollars as the reason the peg was stuck.
However, the token is still trading at $0.998, about 0.2% below its intended price anchor of $1, according to CoinGecko, which collects price data from exchange pairs.
USD1, issued in partnership with cryptocurrency management company BitGo (BITG), is one of the largest dollar-denominated stablecoins. Although it has a market capitalization of $5 billion, it still lags behind larger companies such as Tether’s USDT. and Circle (USDC).
