Yesterday I saw that USD1 had a strange moment. World Liberty Financial's stablecoin briefly dropped to $0.994 on February 23 before recovering, and now it's back near parity. It was a quick event, just minutes, but enough to trigger alarms.

WLFI quickly explained that it was a coordinated attack. They say they compromised co-founders' accounts, spread misinformation, and opened short positions to profit from the panic. I understand the narrative, but it's interesting how these events generate so much speculation. Some on Twitter already compared it to what happened before the TerraUSD collapse in 2022, although the structure is completely different. USD1 maintains 1:1 reserves according to WLFI; it's not an algorithm like Terra.

What caught my attention is that unverified screenshots circulate showing Eric Trump deleting promotional posts during the volatility, and then it appears that ZachXBT is investigating alleged insider trading in a major crypto company. No one confirms anything, but users are already speculating that WLFI might be involved. Of course, without proof.

With stablecoins, everything depends on trust. A loss of parity, even if brief, can trigger massive sell-offs if people start doubting the reserves. The fact that USD1 recovered quickly suggests liquidity mechanisms worked, but it shows how volatile these new stablecoins linked to public figures can be. The coming days will tell if it was just a scare or something more serious. The current market cap is around $2.15 billion, so any stablecoin movement in this space creates noise.