Cryptocurrency market observers noticed the presence of a stablecoin called World Liberty Financial USD (USD1) on the BNB Chain BNB/USD on Monday. However, the platform it was named after hasn’t made any official announcements yet.
What happened: In an X post, Binance co-founder Chanpeng Zhao informed that the smart contract tied to the USD1 token was deployed 20 days ago.
As per the contract details, the coin had a maximum total supply of 3,500,680. On-chain data revealed that cryptocurrency market maker Wintermute had run a few test transfers with USD1.
Zhao's post sparked a rush of meme coin launches under the same name, prompting him to clarify that the official USD1 was not yet available for trading.
Interestingly, World Liberty Financial quoted Zhao’s response, saying, "USD1 is not currently tradable. Beware of scams and follow us here for all official announcements."
See Also: Bitcoin Arms Race: Peter Schiff Doubts Cynthia Lummis’ Theory That China Wants To Take On US — ‘Smart Enough To Have Sold’
Why It Matters: World Liberty Financial, backed by President Donald Trump, has focused on promoting dollar-backed stablecoins and decentralized financial applications.
The project was launched last year to allow users to borrow, lend, and earn interest on funds through the DeFi route. WLFI raised over $590 million by selling its governance token, WLFI.
Well-known cryptocurrency figures, including Tron TRX/USD founder Justin Sun, have invested in the project. Sun was appointed as the project's advisor.
WLFI has been aggressively promoted by Trump and his family. A firm associated with the President, DT Marks DEFI, LLC, stands to receive 75% of the protocol revenue.
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