The post USD1 holds 1:1 peg after organized attack, says WLFI appeared on BitcoinEthereumNews.com.

USD1 stablecoin coordinated attack: what happened and the 1:1 peg according to Bloomingbit (en.bloomingbit.io), the issuer reported a coordinated attack on February 23, 2026 that involved compromised executive accounts, paid influencer disinformation, and short positions in related tokens. The stated intent was to shake confidence in USD1 during peak liquidity hours and provoke disorderly market activity. The issuer maintained that USD1’s 1:1 peg remained supported by reserves and standard mint-and-redeem operations designed for stress periods. In practice, arbitrageurs typically exchange below-par USD1 for $1 of backing, reducing discounts and restoring price alignment across venues. Why it matters for users, liquidity, and market stability Short-lived depegs can create execution risk for users and protocols that treat USD1 as cash-equivalent collateral. Even minor slippage can affect margin calculations, automated liquidations, and settlement in both centralized and on-chain markets. Liquidity depth and redemption throughput are critical during stress. If backing is available and redemptions work promptly, arbitrage can close gaps quickly; if not, discounts can persist and spill over into other assets. A core team member publicly framed the incident as an intentional trust shock rather than a reserve failure. “Someone organized an ‘attack’,” said Dylan, a core member of world liberty Financial. BingX: a trusted exchange delivering real advantages for traders at every level. Immediate impact: sub-$1 prints, quick recovery, Binance context As reported by Decrypt (decrypt.co), USD1 briefly printed below $1, touching about $0.98 on binance and near $0.994 on some aggregators, before recovering to parity in roughly 30 minutes. The rapid reversion is consistent with active mint-and-redeem arbitrage when reserves and operations remain available. Based on data from CoinGecko (coingecko.com) in early February 2026, USD1 traded close to its $1 target with about $2.6 billion in daily volume and a market capitalization near $5.0 billion. These figures suggest robust secondary-market…

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Filed under: News - @ February 23, 2026 7:30 pm