World Liberty Financial (WLFI) has issued a warning to potential investors regarding fake versions of its upcoming USD1 stablecoin. The project, which is partially owned by US President Donald Trump’s family, made the announcement on March 24 on X (formerly Twitter), urging the public to be cautious and emphasizing that the official USD1 token is not yet available for trading.
WLFI is a decentralized finance (DeFi) project that aims to create a decentralized ecosystem for lending, borrowing, and stablecoin-based transactions. The project has already allocated $28.6 million to six digital assets, including ETH, WBTC, MOVE, SEI, AVAX, and MNT. However, despite these investments, the project is currently facing an unrealized loss of $1.62 million, according to blockchain analytical platform SpotOnChain.
The buzz surrounding WLFI’s upcoming stablecoin, USD1, has led to the emergence of fake tokens on various networks such as Solana, Ethereum, and BNB Chain. Blockchain analysis firm Lookonchain reported that over $3.5 million worth of fake USD1 tokens have already been minted. This has raised concerns about potential scams targeting unsuspecting investors.
Former Binance CEO Changpeng Zhao (CZ) acknowledged the deployment of the USD1 smart contract on the BNB Chain in early March. However, he clarified that the token is still undergoing testing and is not yet tradable. Zhao urged the public to exercise caution and avoid falling for scams related to the fake USD1 tokens circulating in the market.
Once officially launched, USD1 will enter the competitive landscape of dollar-pegged stablecoins, where it will compete with established players such as Tether’s USDT, Circle’s USDC, and Ripple’s RLUSD. As the project continues to develop and prepare for the launch of its stablecoin, investors are advised to stay informed and vigilant to avoid falling victim to fraudulent schemes.
In conclusion, World Liberty Financial’s USD1 stablecoin is a highly anticipated addition to the DeFi ecosystem, but investors should be wary of fake tokens and ensure they only engage with the official token once it is officially released. Stay tuned for more updates on WLFI and its upcoming stablecoin launch.