The stablecoin USD1 has shrunk by roughly $401 million in two weeks. Its market capitalisation fell from about $4.43 billion on October 6 to around $4.02 billion, a drop of 9.1 percent. The dollar price held steady throughout: the token traded consistently between $0.998 and $1.000. What shrank, then, was not the price but the number of tokens in circulation.
Who triggered that decline is the striking part. According to an analysis by the blockchain research outfit Onchain Benchmark, just under $200 million of the redemptions trace back to a single address whose owner is unknown. For holders in Germany, a practical question hangs on this: what rights do you have against the issuer when a stablecoin shrinks quickly?
What happened to USD1 between October 6 and October 19
USD1 is a dollar-pegged stablecoin issued by World Liberty Financial. A stablecoin of this design holds its price through deposited reserves rather than an algorithm: for every token issued, a dollar or a dollar-like asset is meant to sit with the issuer.
Between October 6 and October 19, 2026, market capitalisation fell by about $401 million according to CoinGecko data. World Liberty Financial's proof-of-reserves dashboard showe...
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