Trump-linked stablecoin wobbles as WLFI says it's under 'coordinated attack'
Analysis
Price Impact
MedThe stablecoin usd1 experienced a minor depeg of 0.6%, indicating some market concern. while it recovered quickly due to its redemption feature, the 'coordinated attack' narrative suggests potential for future volatility if the underlying issues are not fully resolved or if similar attacks occur.
Trustworthiness
LowThe report of a 'coordinated attack' involving hacked cofounder accounts and paid influencers raises significant doubts about the security and operational integrity of the usd1 project. the need to defend its peg through a redemption mechanism, rather than inherent stability, suggests a lower level of trust.
Price Direction
NeutralThe stablecoin briefly dipped below its peg but recovered, indicating resilience. however, the ongoing narrative of an attack and its vulnerability suggest it could remain under pressure or experience further minor fluctuations as the market digests the news.
Time Effect
ShortThe immediate impact of the 'attack' has been largely absorbed with the recovery of the peg. however, the long-term effects will depend on how the project addresses the security breaches and the credibility of its defenses against future attacks.
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Trump-linked stablecoin wobbles as WLFI says it's under 'coordinated attack' The USD1 token briefly fell to $0.994, some 0.6% below its $1 peg, CoinGecko data shows. By Krisztian Sandor | Edited by Oliver Knight Feb 23, 2026, 3:44 p.m. Make us preferred on Google World Liberty Financial leadership team (Jesse Hamilton/CoinDesk) What to know : USD1 fell as low as $0.994 (0.6% below peg) before recovering to around $0.998. The project claims hackers compromised cofounder accounts, paid influencers to spread fear, and opened short positions on WLFI in an attempt to trigger panic and profit from volatility. Developers credited USD1’s dollar-for-token redemption feature with helping maintain confidence and prevent a deeper or prolonged depeg, underscoring how direct convertibility remains critical to stablecoin resilience. USD1, the U.S. dollar stablecoin of World Liberty Financial — a crypto protocol with close links to President Donald Trump’s family — slipped from its $1 peg on Monday amid what the project’s developers described as a "coordinated attack" against the protocol. The token fell to as low as $0.994 during the day, some 0.6% from its intended $1 anchor, CoinGecko data shows. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . In a Monday X post , the team behind USD1 said multiple cofounder accounts were hacked, influencers were paid to sow doubt, and short positions were opened against the protocol’s native token, WLFI, in what they framed as a deliberate effort to stir panic and profit from it. "It didn’t work," the post said, saying that a redemption mechanism that allows USD1 holders to exchange their tokens for an equal amount of U.S. dollars as the reason the peg held firm. However, the token still traded at $0.998, some 0.2% below its intended $1 price anchor, CoinGecko shows, which gathers price data from exchange pairs. USD1 price (CoinGecko) USD1, issued in partnership with crypto custodian BitGo (BITG) is among the largest dollar-backed stablecoins. It has a $5 billion market capitalization, but it still trails major players like Tether's USDT USDT $ 1.0002 and Circle's (USDC). World Liberty Financial Stablecoins Trump More For You Anthony Pompliano led Procap Financial dips toe into buybacks By James Van Straten | Edited by Stephen Alpher 24 minutes ago The company, which has raised more than $750 million from investors, repurchased about $350,000 worth of its stock. What to know : ProCap Financial repurchased 148,241 shares at what is said was about a 35% discount to NAV.. BRR holds 5,007 BTC worth about $335 million, $70 million in cash, $100 million in convertible debt. The company said it is committed to narrowing that NAV discount. Read full story Latest Crypto News Crypto.com wins initial approval for U.S. federally regulated crypto custodian bank 24 minutes ago Anthony Pompliano led Procap Financial dips toe into buybacks 24 minutes ago Elliptic flags Russia-linked crypto platforms’ ongoing sanctions evasion 57 minutes ago CoinDesk 20 performance update: AAVE gains 1.7% while index trades lower over weekend 1 hour ago BitMine Immersion added $98 million of ether last week as losses balloon to more than $8 billion 1 hour ago U.S. Treasury may boost T-Bill issuance as stablecoins eye $2 trillion market cap: StanChart 2 hours ago Top Stories Bitcoin stabilizes after overnight crypto rout, bouncing to $66,000 4 hours ago Strategy logs 100th bitcoin purchase announcement, adding 592 coins last week for $39.8 million 2 hours ago Bitcoin ETFs bleed $3.8 billion in historic five-week outflow streak 11 hours ago Ethereum's cofounder Vitalik Buterin sells more ether while prices continues to slide 5 hours ago To freeze or not to freeze: Satoshi and the $440 billion in bitcoin threatened by quantum computing 23 hours ago Tariff travails resurface, bitcoin holders prepare for declines 3 hours ago In this article USDT USDT $ 1.0002 ◢ 0.03 %