$1, World Liberty Financial’s US dollar stablecoin – a crypto protocol with close ties to President Donald Trump’s family – slipped 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, about 0.6% from its expected footing of $1, according to CoinGecko data.
In a post on Monday
“It didn’t work,” the post said, claiming that a buyback mechanism that allows $1 USD holders to exchange their tokens for an equal amount of US dollars is why the peg has remained firm.
However, the token is still trading at $0.998, about 0.2% below its expected anchor price of $1, shows CoinGecko, which gathers price data from trading pairs.
USD1, issued in partnership with crypto custodian BitGo (BITG), is among the largest dollar-backed stablecoins. Its value is backed 1:1 by short-term U.S. Treasury bills, U.S. dollar deposits and other cash equivalents and reports monthly certifications of its reserve signed by consulting firm Crowe, according to BitGo. The token currently has a market cap of $5 billion, but it still lags behind major players like Tether’s USDT. and Circle (USDC).
Read more: Goldman Sachs, Franklin Templeton and Nicki Minaj: Inside Trump’s Surreal Cryptocurrency Summit at Mar-a-Lago
UPDATE (February 23, 4:00 p.m. UTC): Adds details on USD1 support.
