USD1, the Trump family-backed stablecoin, briefly slipped below its $1 peg after an alleged coordinated attack, raising fresh questions about trust and resilience in the crypto market.
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| USD1, issued by World Liberty Financial and backed by the Trump family, quickly rebounded after a short-lived drop below $1, as the company denied any breach of its core crypto infrastructure. Image: CH |
WASHINGTON, United States, February 24, 2026
USD1, the Trump family-backed stablecoin issued by World Liberty Financial, briefly fell below its $1 benchmark on Monday, dipping to approximately $0.994 before swiftly recovering — a minor fluctuation that nonetheless drew outsized market attention.
The company, co-founded in 2024 by former U.S. President Donald Trump and his three sons alongside business partners, said its engineering and security teams had “successfully repelled a coordinated attack.” In a statement posted on X, World Liberty disclosed that the accounts of certain co-founders were accessed without authorization, though it did not specify which individuals were affected.
Crucially, the firm emphasized that no smart contracts or digital wallets underpinning USD1 or its affiliated token WLFI were compromised.
“Zero smart contracts were affected. All USD1 funds remain completely safe, secure, and fully backed. Our infrastructure and team operated exactly as designed,” the company said.
Stablecoins are designed to maintain a steady value — typically $1 — by backing tokens with reserves of U.S. dollars and cash-equivalent securities. While small price deviations are common due to liquidity and trading mechanics, sudden drops, even marginal ones, can trigger heightened scrutiny.
USD1’s slide to $0.994 represents a deviation of less than 1%, but in a sector shaped by past de-pegging crises, even minor breaks can test investor confidence. Rapid arbitrage trading often helps restore equilibrium, and USD1’s recovery to around $0.9994 suggests that market participants ultimately trusted the issuer’s assurances.
According to data from CoinGecko, USD1 ranks as the fifth-largest stablecoin by market capitalization, placing it among the more significant players in the global digital asset ecosystem.
USD1’s political branding adds an additional layer of complexity. The direct association with Donald Trump — one of the most polarizing figures in American politics — amplifies both visibility and scrutiny. For supporters, the project represents an expansion of conservative-aligned ventures into digital finance. For critics, it raises questions about governance, oversight, and systemic risk.
The alleged social media breach underscores how reputational vulnerabilities can quickly intersect with market dynamics. Even without a direct hack of financial infrastructure, misinformation or uncertainty can spark volatility in crypto markets where trading is continuous and sentiment-driven.
World Liberty Financial’s swift communication and the stablecoin’s rapid price recovery indicate that its technical safeguards and liquidity mechanisms functioned as intended in this instance. Yet the episode serves as a reminder that in the stablecoin economy, confidence is as critical as collateral.
For USD1, Monday’s brief wobble appears contained. But in an industry where trust can shift in seconds, even a fraction-of-a-cent dip can raise a larger question: how resilient is resilience when the next real test arrives?