USD1, a stablecoin affiliated with President Donald Trump, just briefly dipped below its $1.00 price peg.
The asset slipped to $0.9942 on Monday morning, before regaining its peg within a couple of hours.
The decentralized finance (DeFi) project World Liberty Financial (WLFI), which issues USD1, attributed the volatility to a “coordinated attack” from hackers.
“Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive WLFI shorts to profit from the manufactured chaos.
It didn’t work.
Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par. No scammer can shake the long-term commitment of the entire WLFI team and cofounders to USD1.”
World Liberty’s native token, WLFI, launched public trading at the beginning of September.
A corporate entity linked to President Donald Trump and his family slashed its equity stake in World Liberty over the course of last year.
The Trump-affiliated company DT Marks DEFI LLC previously owned a 60% stake in the DeFi project.
Fine print on the platform’s website now indicates DT Marks owns approximately 38% of the equity interests in WLF Holdco LLC, which holds the only membership interest in World Liberty Financial.
World Liberty notes that WLF Holdco holds all the rights to net protocol revenues from the DeFi platform, except for net proceeds from the sale of WLFI tokens. The platform also says neither Trump nor any of his family members “is an officer, director or employee of, WLF Holdco LLC or World Liberty Financial.”
However, the DeFi project’s website notes that DT Marks DEFI LLC and “certain family members of Donald J. Trump” hold 22.5 billion WLFI tokens.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Other Articles
Analyst Explains Why and Whether It Can Hurt XRP’s Price
Leading Crypto Prop Firms: Proof of Reserves
No Comment! Be the first one.