$USD1 Depeg Crisis: Trump Family Stablecoin Hacked or Luna 2.0 Warning?

On Monday, USD1, the world's fifth-largest stablecoin issued by the Trump family's crypto firm World Liberty Financial, experienced a thrilling episode of "de-pegging and long-short gaming."

Panic spread rapidly across the market after Eric Trump (Donald Trump's second son) suddenly deleted numerous project-related tweets on the X platform. Although officials quickly clarified that it was "manufactured chaos," the incident has once again thrust "celebrity-backed crypto assets" into the spotlight.

📊 Data Review: 30 Minutes of "De-pegging Panic"

In the crypto market, a stablecoin's "peg" is the baseline of trust. However, around 8:15 AM ET on Monday, this baseline was briefly breached:

• USD1 Flash Crash: On the major exchange Binance, the trading price of USD1 plummeted from 0.9990 USDT to 0.9802 USDT (CoinGecko data showed a drop to $0.994).

• Governance Token Dump: Simultaneously, World Liberty's native token, WLFI, dove approximately 7%, falling from $0.117 to $0.109.

• Massive Scale: As the world's fifth-largest stablecoin with a market cap of $4.93 billion, USD1's volatility instantly triggered market risk aversion.

Fortunately, within 30 minutes of the incident, the USD1 price recovered to parity with USDT, and officials confirmed that smart contracts and fund wallets were unaffected.

Official "Attack Theory" vs. Community "Conspiracy Theory"

Regarding this severe volatility, World Liberty officials characterized it as an organized, coordinated attack.

The official statement claimed that the X accounts of several co-founders were hacked. The attackers allegedly hired "paid KOLs" to spread FUD (Fear, Uncertainty, and Doubt) online while simultaneously opening large short positions against $WLFI in the market, attempting to profit from the manufactured chaos. Officials emphasized that the asset protocol layer remained absolutely secure.

However, the crypto community was not convinced by this explanation, with skepticism drowning out the official statement:

• Deletion Mystery: Users questioned why, if it was merely a hacker attack, Eric Trump would delete a large number of tweets at the exact same time. This was interpreted by some community members as an "insider cleanup."

• "Luna 2.0" Fears: Social media was flooded with concerns about the project's mechanism, with many critics arguing the project has always been "harvest-oriented."

• Impending Investigation: Market rumors further suggested that renowned on-chain sleuth ZachXBT is about to release a major investigation targeting WLFI, which further intensified capital flight psychology.

The brief de-pegging of USD1 offers a valuable case study for the entire crypto industry: Under the impact of extreme sentiment and sudden security events, what is the true foundation of a stablecoin?

History has repeatedly proven that assets overly reliant on social media narratives or complex mechanisms often prove fragile under liquidity pressure.

True "stability" should not be disturbed by external public opinion or security loopholes in a single social media account. For a mature financial market, there is only one moat for stablecoins: absolute transparency, strict compliance audits, and 100% fiat asset reserves.

📚 Further Reading: Understanding the Ecosystem and Application of Compliant Stablecoins

• Ecosystem & Yield Mechanisms: Explore OSL StableHub: Unlocking Exclusive Rewards and Ecosystem Value for Compliant Stablecoins
  

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