Author: Wenser, Odaily
Original Title: "Trump Family Stablecoin" USD1's Complementary Strategy: Institutional Investment and Meme Liquidity Pool
Since WLFI officially announced the launch of stablecoin USD1 on March 25, in less than 3 months, USD1's circulation has exceeded 2 billion tokens, with a market value of $2.18 billion. In comparison, USDT took about 5 years (early 2019) to reach this milestone; USDC took about 2 years (September 2020). Although the cryptocurrency industry's maturity differs, achieving this in such a short time demonstrates USD1's strong development momentum. In light of this, Odaily will outline USD1's development strategy and potential for large-scale adoption in this article for readers' reference.
USD1's Strategic Path: First Ethereum and BSC, Then TRON
On March 25, amid widespread market rumors, WLFI officially announced the upcoming launch of a "institutional-grade stablecoin" - USD1.
According to the official announcement, USD1 will be 100% backed by short-term US Treasury bonds, US dollar deposits, and other cash equivalents. Initially, USD1 tokens will be minted on Ethereum and BSC chains, with plans to expand to other protocols in the future. Each token aims to maintain a $1 value, fully supported by a reserve investment portfolio audited regularly by a third-party accounting firm; USD1 reserves will be custodied by BitGo, the world's largest independent qualified custody institution.
At the time, as a strong competitor to USDT and USDC, backed by the Trump family project WLFI, USD1 sparked market speculation, with many believing it might replace the two major stablecoins. Binance founder CZ had stated: "USDT and USDC don't need to be replaced, the more stablecoins, the better." The reason is naturally that BSC is one of the primary ecosystems supporting USD1.
In the following days, as Congress was reviewing the "Stablecoin Genius Act", five Democratic senators jointly wrote to the Federal Reserve and OCC, questioning the "unprecedented risks" brought by the USD1 stablecoin launched by the Trump family's crypto project WLFI, directly targeting Trump. They claimed he weakened regulatory independence through a February executive order and holds 60% of WLFI's stock, constituting a significant conflict of interest.
Despite this, USD1 continued to progress smoothly and was confirmed by WLFI co-founder Zack Witkoff in May to be natively issued on the TRON chain. On June 14, the first USD1 was successfully minted on the TRON chain, announced by TRON founder Justin Sun and subsequently confirmed by Trump's second son, Eric Trump.
Looking back at USD1's development route over the past 2 months, it can be considered a prime example of complementary strategies.
USD1's Complementary Strategy: Institutional Adoption as the Positive, Meme Liquidity as the Unconventional
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Secondly, WLFI had planned to airdrop USD1 to WLFI token holders as early as April, and after passing a community proposal vote, the plan was officially implemented in early June, airdropping 47 USD1 tokens to WLFI subscription addresses (market speculation suggests this number may be related to Trump being the 47th US president), and accumulated airdrops of $4 million in a short time. It must be said that perhaps the development path of every stablecoin project is inseparable from the "massive token distribution" link.
The latest news is that WLFI has officially integrated with OKX Wallet, allowing users to seamlessly access the project and participate in cross-chain and on-chain services for the USD1 stablecoin. In this regard, WLFI and USD1 have successfully completed the final puzzle piece of their application - crypto wallet and other industry infrastructure.
Conclusion: USD1's potential for breakthrough is worth anticipating
According to Coinmarketcap data, USD1's 24-hour trading volume is currently around $600 million, of which approximately 20% is from CEX trading volume, and about 80% is from DEX trading volume, demonstrating the initial effectiveness of its "complementary" development route.
At the critical point of the upcoming implementation of the US stablecoin regulatory bill "Genius Act", backed by the Trump family and WLFI, USD1's application scenarios are expected to be further expanded, and it may become another major stablecoin project following the "crypto stablecoin leader" USDT and the "first stablecoin stock token" USDC.
Moreover, influenced by President Trump's identity, USD1 may serve as an important medium for trade currency or potentially resolving tens of trillions of US national debt in subsequent trade wars.
Original Title: The Complementary Path of "Trump Family Stablecoin" USD1: Institutional Investment and Meme Liquidity Pool
