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USD1 Stablecoin Briefly Slips From $1 After WLFI Alleges Coordinated Attack

The Trump-linked issuer credits redemptions alongside 1:1 reserves for the quick rebound.

Overview

  • USD1 dipped as low as $0.994 on CoinGecko while Binance showed a brief trough near $0.9802 before prices returned to parity within minutes.
  • WLFI said hacked cofounder accounts, paid disinformation and large short positions targeted the ecosystem, a claim not independently verified by reporters.
  • The issuer pointed to a mint‑and‑redeem mechanism and claimed full backing as factors that limited the deviation and supported rapid stabilization.
  • WLFI’s native token fell roughly 7–8% during the episode before partially recovering, highlighting sensitivity to liquidity and sentiment.
  • USD1 ranks among the largest dollar‑backed stablecoins with custody by BitGo and monthly reserve attestations from Crowe, while outside scrutiny continues, including a widely watched on‑chain report due February 26 with no confirmed link to today’s events.