Presented as a monetary and geopolitical weapon, the Stablecoin USD1, backed by the US dollar and promoted by the Trump family, failed to convince the market. Its launch, however supported by volumes raised on certain platforms, reveals an artificial dynamic, far removed from the ambitions displayed.
In short
- USD1, the stablecoin promoted by Trump, displays high volumes but is based on artificial liquidity concentrated in three wallets.
- In the absence of credible strategy, incentives and transparency, USD1 fails to win on large platforms like Binance.
- The project, controlled by the Trump family, arouses criticism for its opaque drifts and private enrichment aims.
Stablecoin USD1: an inflated volume, an absent adoption
Launched with great fanfare by World Liberty Financial, a company affiliated with the Trump family, the Stablecoin USD1 tried to capitalize on the image of Donald Trump and on a geopolitical storytelling around the defense of the US dollar. The token, listed on May 22 on Binance, experienced a sudden flight on Pancakeswap with more than $ 14 million in daily volumes! And in record time, USD1 became the 7th largest stablecoin.
However, this activity was revealed in trompe-l'oeil. According to Kaiko, more than 50 % of cash comes from only 3 wallets. In other words, there is no real market, just a staging. Far from being the bridge between decentralized platforms and scholarships like Binance, the USD1 remains confined to an artificial microcosm. Even a transaction of $ 2 billion with MGX was not enough to generate the expected training effect.
The strategic failure of a parallel state crypto
The strategy deployed around USD1 lacked essential levers for any successful launch of Stablecoin:
- No credible institutional partners: no bank, neither Hedge Fund, nor major financial infrastructure to legitimize the assets;
- No promotional incitement: no cashback, discounts, or bonus to energize the first transactions;
- Low integration in DAPPS ecosystems: USD1 remains unexploited in the DEFI or web3 logics;
- Lack of transparency on the reserves: while Tether and Circle comply with frequent audits, World Liberty keeps silence;
- Clivating ideological positioning: Politicization of the token limits its international adoption.
Trump Jr. wanted a ” patriotic stable “, But he above all forgot the laws of economic attractiveness. A striking contrast with the overall boom in stablecoins, as Ryan Lee, analyst at Bitget Research points out:
The Stablecoins market exceeded $ 250 billion… thanks to the adoption of DEFI platforms. Their integration into decentralized finance acts as a decisive catalyst […] While emphasizing the need for solid regulatory frameworks to guarantee their stability and manage risks.
When the populist crypto turns to private enrichment for Trump
Trump's USD stablecoin took a difficult start And beyond commercial fiasco, it is the redistribution mechanics around USD1 and the $ Trump token that feeds anger. World Liberty donates 75 % of its profits to family entities. The $ Trump token, promoted by VIP competitions including dinner with the current president, has generated more than $ 5.2 billion in gains captured by a few key wallets.
Opposite, hundreds of thousands of investors have lost billions. For analyst Adam Morgan McCarthy of Kaiko, ” He failed to jump for staging platforms to centralized places that serve the mass market »»
The USD1 seems to serve the interests of a clan more than solving a real problem. In reverse of the spirit of Bitcoin, this crypto confirms the interior of the elites, transforming an emancipation tool into a prestige lever and closed accumulation.
Symbol of crypto-populism disconnected from market realities, USD1 also embodies a democratic drift. Donald Trump, political promoter of the crypto, is also a judge and part, his family controlling the issuing entity. An explosive mixture, between economic failure and suspicion of presidential enrichment. Does this new currency from Trump threaten American democracy?
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