- The WLFI stablecoin USD1 decoupled from the dollar to start the week, falling 6% $0.994 before stabilizing again.
- Issuer World Liberty Financial classified the incident as a coordinated attack in several public statements.
According to company information, social media accounts of several WLFI founders hijacked and misused for false reports.
At the same time, influencers were bribed to undermine the stability of USD1. In addition, noticeably large short positions on WLFI tokens appeared, which should benefit from the uncertainty generated in the market.
Hijacked accounts and targeted propaganda against WLFI
World Liberty Financial made it a point to state that wallets, smart contracts and internal systems were not tampered with. The attack was aimed exclusively at communication channels in order to create a negative public perception.
However, the short-term price collapse was cushioned by the existing redemption mechanism, meaning that the damage caused remained manageable.
Price stabilization mechanisms worked
Customers were still able to redeem USD1 against the dollar at a 1:1 ratio, which quickly stabilized the rate and brought it back up to $0.999.
Experts see this as an indication that the project’s liquidity structure is working.
At the same time, the incident shows how vulnerable stablecoins are to targeted disinformation, which is much easier to pull off than technical attacks that override security mechanisms.
Political dimension and market environment
With a market capitalization of around five billion dollars, the USD1 is a relevant but not dominant player in the stablecoin sector. The project’s proximity to the Trump family has attracted additional attention and political friction since its launch.
World Liberty Financial sees the attack as an attempt to weaken the project at an early stage of growth. What is crucial for the market is whether the USD1 will survive similar stress tests in the future without major price reactions and whether the company will reliably secure its communication channels in the future.
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