Trump's USD1 Stablecoin Loses Its Peg — World Liberty Financial Blames a "Coordinated Attack"

You literally cannot make this up. The Trump-affiliated USD1 stablecoin — issued by World Liberty Financial — just depegged from the dollar, and the team's official response is to blame a "coordinated attack." Classic.

What Happened

USD1, which launched with all the fanfare of a presidential rally, briefly traded below $0.97 before partially recovering. For a stablecoin, that's not a wobble — that's a five-alarm fire. The token was supposed to be the poster child of the "pro-crypto president" narrative, and instead it's giving us Luna flashbacks.

The Numbers Don't Lie

This comes while the broader market is already bleeding. BTC is down 4.3% to $63,130, ETH dumped 3.2% to $1,824, and the Fear & Greed Index is sitting at a miserable 8 — Extreme Fear. Total market cap: $2.26 trillion. Nobody is having a good time.

"Coordinated Attack" or Just Bad Design?

World Liberty Financial claims malicious actors targeted the peg mechanism. But here's the thing — if your stablecoin can be depegged by a "coordinated attack," then your stablecoin isn't stable. Full stop. The whole point of a peg is that it holds under pressure. UST taught us this lesson. Apparently not everyone was paying attention.

The Political Angle

This is awkward for the Trump administration, which has been positioning itself as the most crypto-friendly government in US history. Having your own stablecoin lose its peg while you're trying to pass stablecoin legislation is... chef's kiss levels of irony.

Watch this space. If USD1 can't hold $1, the regulatory blowback could set the entire stablecoin industry back months. And the bears are already circling.