USD1, the US dollar stablecoin of World Liberty Financial, 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” against the protocol.
The token fell as low as $0.994 on the day, about 0.6% from its expected anchor of $1, CoinGecko data shows.
In a Monday
“It didn’t work,” the post said, saying that a redemption mechanism that allows $1 holders to exchange their tokens for an equal amount of US dollars is the reason the peg held firm.
However, the token is still trading at $0.998, about 0.2% below its expected anchor price of $1, shows CoinGecko, which collects price data from trading pairs.
USD1, issued in partnership with cryptocurrency custodian BitGo (BITG), is among the largest dollar-backed stablecoins. It has a market capitalization of $5 billion, but it still lags behind big players like Tether’s USDT. and Circle (USDC).
