Ethereum News: Trump Family-Affiliated WLFI Launches USD1 Stablecoin with Mixed Prospects

In a significant move in the cryptocurrency space, World Liberty Financial (WLFI), closely tied to the Trump family, has introduced USD1, a stablecoin redeemable on a 1:1 basis with the US dollar. However, despite WLFI’s assertions of full backing by short-term US treasuries and other cash equivalents, the project’s token holdings currently show substantial unrealized losses. Here’s a closer look at this intriguing development.

Trump Family-Linked World Liberty Financial Launches USD1 Stablecoin

World Liberty Financial (WLFI), heavily affiliated with the Trump family, has officially launched USD1, a stablecoin redeemable 1:1 for the US dollar. WLFI claims that USD1 will be 100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. However, its token holdings currently contain over $111 million in unrealized losses. Initially, USD1 tokens will be minted on the Ethereum blockchain.

Ethereum May Be Wrapping Up Accumulation Phase

Ethereum is trading back above the key $2,000 level after volatile weeks. Since late February, ETH has dropped over 38%, sparking panic and fears of a prolonged downtrend. However, sentiment is shifting as investors look for signs of recovery. Analysts believe recent volatility may have been a final shakeout before a new uptrend. Top analyst Ted Pillows suggested Ethereum may be wrapping up its “manipulation phase.”

CoinGecko Research: Impact of Ethereum Foundation Sales on ETH Price

A recent study by CoinGecko reveals that Ethereum Foundation (EF) sell-offs of less than 9K ETH have no significant positive correlation on price changes. However, larger sales, such as 70K ETH, have resulted in a 20.6% dip, while a sale of 16.3K ETH was followed by a 36.5% rise. The research analyzed EF sell-offs from October 16, 2017, to January 15, 2025, using publicly available on-chain data from Dune, Etherscan, and CoinGecko. Note that only ETH transactions above 100 ETH were considered, and the analysis did not take into account market trends or macroeconomic events.

Analysts Say Ethereum Struggles as Competition Intensifies

Analysts say Ethereum is struggling to keep pace as rival blockchains attract users with faster speeds and lower costs. Technical challenges and growing reliance on third-party networks are weakening Ethereum’s position in decentralized finance. Investor interest is shifting toward speculative trading like memecoins, reducing focus on Ethereum’s original financial use cases. Outflows from Ethereum-related investment products signal fading confidence among both crypto-native users and institutional investors.

World Liberty Financial Solidifies Stablecoin Plans Amid Growing Speculation

World Liberty Financial, a newly launched cryptocurrency platform affiliated with the Trump family, announced its plans to introduce USD1, a stablecoin pegged 1:1 to the U.S. dollar and backed by U.S. dollar deposits, government treasuries, and cash equivalents. Eric and Donald Jr. Trump serve as “Web3 ambassadors” and Barron Trump is listed as the “DeFi visionary” for the project. USD1 will be minted on Ethereum and Binance Smart Chain, with BitGo serving as the custodian to ensure secure, institutional-grade digital asset management.