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Stablecoin temporarily supported by DWF Labs has lost its peg, raising many doubts.
USDF, a stablecoin with a market capitalization of over 540 million USD, temporarily lost its link to the dollar this morning, raising concerns due to its association with DWF Labs, a company involved in Donald Trump's cryptocurrency initiatives. Falcon Futures, the issuer of USDF, asserts that this stablecoin is backed by assets exceeding 116%, but most of the collateral is stored off-chain and lacks transparency.
The USDF's value dropping to 94.3 cents per token in an hour has drawn criticism from the community. DWF Labs is expected to announce details about the reserve fund next week, but it remains unclear at this time. This could complicate the launch of stablecoins in the future and negatively affect market confidence, especially as DWF becomes a regular partner of Donald Trump.