U.S. President Donald Trump's family-invested crypto fund, World Liberty Financial, recently airdropped its new stablecoin USD1 to WLFI token holders. According to on-chain data analysis platforms Lookonchain and SlowMist, specific wallets have distributed USD1 to WLFI holders.
Etherscan data shows that a wallet airdropped 47 USD1 tokens to each WLFI holder wallet in a single batch transfer. The project previously revealed that over 85,000 users who participated in the WLFI token sale had completed KYC verification as of March. Although World Liberty Financial has not officially announced this airdrop, they had previously proposed distributing small amounts of USD1 to WLFI holders to test on-chain airdrop functionality, promote the new coin, and reward the community, with a proposal receiving 99.96% support.
USD1 Stablecoin Overview and Market Expansion
The USD1 stablecoin was launched in March, with the issuer claiming it is fully backed by short-term U.S. Treasury bills, USD deposits, and other cash equivalents. Its market cap is reportedly rapidly surpassing $2 billion, ranking among the top five stablecoins. USD1 is currently integrated into major trading platforms like HTX and DeFi protocols such as Lista DAO, and has achieved cross-chain functionality between Ethereum and BNB Chain through Chainlink's Cross-Chain Interoperability Protocol (CCIP).
Currently, USD1 is temporarily reported at $29.99, with a 24-hour trading volume of $6.77 billion on Coinmarketcap at the time of writing. Airdrop recipients can trade on mainstream CEXs and DEXs such as Binance, Bitget, Gate, Uniswap, and Pancake, barring any unexpected circumstances.
Trump Family Stablecoin Raises Market Concerns
However, USD1's rapid development is accompanied by multiple concerns. According to its whitepaper, Trump and his three sons serve as "ambassadors" or "advocates" in the project, raising potential conflict of interest questions from U.S. Senate Democratic Senator Richard Blumenthal. World Liberty Financial's lawyers responded that these are honorary positions without compensation or control.
According to dune analytics data, USD1's supply is highly concentrated, with just two wallets holding 84.4% of the total supply, and a third wallet holding an additional 9.5%, raising market concerns about its decentralization and potential market manipulation risks.
Its governance structure is also criticized for prioritizing personal profits over ecosystem growth, with non-tradable governance tokens limiting investor liquidity. The association with the Trump family and potential foreign capital connections may trigger stricter regulatory scrutiny and challenge USD1's compliance and stability, such as the EU's Markets in Crypto-Assets (MiCA) regulation, which would require USD1 to store most reserves in EU-regulated banks and comply with trading volume caps, affecting European token holders.
