Trump family $5 billion stablecoin scare! Little Trump’s action causes the USD to temporarily decouple by 2% at $1.

Supported by the Trump family, the cryptocurrency project World Liberty Financial (WLFI) issued the US dollar stablecoin USD1. Today (23rd), it temporarily lost its peg, with the price dropping to approximately 0.98 USDT. However, before press time, it quickly rebounded to 1 dollar. USD1 has an issuance volume of about 5 billion dollars, making it the fifth-largest stablecoin currently.

Eric Trump deletes retweeted post, causing market panic

The incident began when Eric Trump deleted a previous retweeted post. The content was from WLFI’s official account, mentioning that “more USD1 trading pairs will soon be available on Binance.” Eric Trump’s X profile still contains a link to WLFI’s official account, and most of the content related to World Liberty Financial on his account has not been deleted, indicating his overall support stance has not significantly changed.

WLFI: USD1 was targeted by coordinated attack

In response to market volatility, WLFI’s official statement said that USD1 experienced an organized attack that morning. Multiple WLFI co-founders’ accounts were compromised, and someone paid influencers to spread panic messages (FUD). At the same time, large WLFI short positions were established, attempting to profit from market turbulence. The official emphasized that the attack ultimately did not affect USD1’s fundamentals. Thanks to a sound minting and redemption mechanism and 100% asset backing on a 1:1 basis, USD1 has stabilized back to parity.

Eric Trump reaffirms support for WLFI

After the market turbulence, Eric Trump retweeted WLFI-related posts and stated: “Very excited to bring the Trump Group to the Maldives, combining physical assets with digital assets. World Liberty Financial will lead the way.”

Trader perspective: information gap causes panic selling

Market analyst Vida, who specializes in event-driven trading, took the opportunity to buy USD1 at a low price. He believes USD1 is a fully collateralized, compliant stablecoin, not an algorithmic one. When communicating with traders in European and American markets, they generally expressed confusion about the reason for the depeg. After confirming that some market panic might stem from the Chinese-speaking community’s overinterpretation of Eric Trump’s deleted post, he chose to buy the dip.

This article “Trump Family’s $5 Billion Stablecoin Panic! Little Trump’s Action Causes USD1 to Depeg 2%” was first published on Chain News ABMedia.