The USD1 stablecoin briefly misplaced its greenback peg on February 23, falling to round $0.994 earlier than rapidly recovering. The token now trades near parity, suggesting the disruption lasted solely minutes.
USD1 is issued by World Liberty Monetary (WLFI), a DeFi undertaking linked to enterprise entities related to Donald Trump and his household. The stablecoin at present has a market capitalization close to $4.8 billion.
USD1 Worth Chart. Supply: CoinGecko
World Liberty Monetary’s Stablecoin Depeg Triggers Hypothesis
WLFI responded inside hours. The corporate mentioned attackers compromised a number of cofounder accounts, unfold false info, and opened quick positions to revenue from panic promoting.
Regardless of the speedy restoration, the incident triggered widespread concern throughout the crypto neighborhood.
A coordinated assault was launched in opposition to USD1 this morning. Attackers hacked a number of WLFI cofounder accounts, paid influencers to unfold FUD, and opened huge $WLFI shorts to revenue from the manufactured chaos.
It didn’t work.
Because of USD1’s sound mint-and-redeem mechanism…
— WLFI (@worldlibertyfi) February 23, 2026
Some customers in contrast the sudden depeg to early warning indicators seen earlier than the collapse of algorithmic stablecoins corresponding to TerraUSD in 2022.
Nonetheless, USD1 differs structurally. WLFI says it maintains full 1:1 reserves, not like TerraUSD’s algorithmic design, which relied on arbitrage mechanisms slightly than direct asset backing.
In the meantime, unverified reviews circulated on social media claiming that Eric Trump deleted older promotional posts associated to USD1 through the volatility.
Screenshots have circulated on-line, however no unbiased affirmation has verified these claims.
that is fairly clearly a WLFI/bonk exposé
no coincidence that eric trump is deleting his WLFI posts as we communicate
the trump administration isn’t solely looting the treasury but in addition colluding with the worst criminals within the crypto house to squeeze out each penny they will https://t.co/a74gmzaJyD pic.twitter.com/REJXGW8JVQ
— retard mode ✞ (@retardmode) February 23, 2026
Individually, blockchain investigator ZachXBT mentioned he plans to launch findings later this week on alleged insider buying and selling involving a serious crypto firm.
He didn’t identify the agency. Nonetheless, some social media customers speculated that WLFI may very well be concerned. There isn’t a proof supporting this declare on the time of writing.
Stablecoins rely closely on confidence. Even temporary depegs can set off speedy promoting if customers worry insolvency or reserve weak spot.
USD1’s fast restoration means that redemptions and liquidity mechanisms functioned as designed. Nonetheless, the incident displays how rapidly market sentiment can shift, particularly for newer stablecoins tied to high-profile figures.
This $WLFI scenario is loopy
> ZachXBT pronounces main insider buying and selling investigation dropping Feb 26
> $USD1 practically depegged right now
> Eric Trump allegedly deleted some WLFI tweets
> WLFI claims it was a coordinated assault
> Eric Trump put up about WLFI after
Timing may very well be… pic.twitter.com/HnhOZ2EiqH
— Chris ☕️ (@ChrisCoffee) February 23, 2026
The corporate has not disclosed technical particulars of the alleged assault.
The approaching days, together with any investigation disclosures, will seemingly decide whether or not the occasion stays a short-lived market shock or develops right into a broader credibility take a look at for USD1.
