Trump-backed stablecoin falters amid WLFI’s warning of an organized attack.

USD1, the U.S. dollar–pegged stablecoin from World Liberty Financial — a crypto initiative linked to the family of President Donald Trump — briefly slipped below its $1 target on Monday as developers alleged a coordinated effort to destabilize the project.

Price data from CoinGecko shows the token touched an intraday low of $0.994, about 0.6% under its peg. While it recovered part of the decline, USD1 continued to change hands slightly below parity at roughly $0.998.

In a statement posted on X, the team said several co-founder social media accounts were compromised, influencers were allegedly incentivized to spread negative narratives, and traders opened short positions against WLFI, the protocol’s native token. The developers described the activity as a deliberate attempt to generate fear and profit from market disruption.

The project maintained that its redemption mechanism — which allows holders to exchange USD1 for U.S. dollars on a 1:1 basis — prevented a deeper depeg and helped restore stability.

USD1 is issued in partnership with digital asset custodian BitGo. The token is backed one-to-one by short-term U.S. Treasuries, dollar deposits and other cash equivalents, with monthly reserve attestations signed by consulting firm Crowe, according to BitGo.

With a market capitalization near $5 billion, USD1 ranks among the larger dollar-backed stablecoins, though it remains smaller than industry leaders such as Tether’s USDT and Circle’s USDC