The price of USD1, the stablecoin associated with Donald Trump’s presidency, briefly fell below $1.00.
On Monday, the asset fell to $0.9942 before recovering its value within two hours.
World Liberty Financial, a decentralized (DeFi), project that issues the USD1, attributed this volatility to a coordinated attack by hackers.
Hackers hacked into several accounts of WLFI founders, then paid influential people to spread false information. They also opened huge WLFI shorts in order to make money from the created chaos.
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We are consistently trading at par thanks to the USD1 mint-and redeem mechanism. The USD1 .” team at WLFI and its co-founders are committed to the project for the long term.
World Liberty launched the public trading of its native token, WLFI at the start of September.
World Liberty’s equity was reduced by a corporate entity associated with President Donald Trump, his family and their business over the last year.
Trump’s affiliated company DT Marks DEFI LLC owned a 60 percent stake in DeFi.
The fine print of the platform website indicates that DT Marks now owns about 38% equity interest in WLF Holdco LLC which is the sole member interest in World Liberty Financial.
World Liberty states that WLF Holdco owns all rights to the net revenue from DeFi, excluding the net proceeds of the sale WLFI tokens. According to the platform, neither Trump, nor anyone in his family, “is an employee, officer or director of WLF Holdco LLC, or World Liberty Financial.”
The DeFi website states that DT Marks DEFI LLC, and “certain members of Donald J. Trump’s family” have 22.5 billion WLFI.
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Sources of Images include Pixabay Creative Commons & Midjourney
The post Trump-Affiliated Stablecoin Shortly Depegs after a ‘Coordinated Attack” on World Liberty Financial could be updated as new information becomes available.