WASHINGTON, D.C., USA – May 30: President Donald Trump will depart at the White House at Irvin Works, Steel, in West Mifflin, Pennsylvania, Washington, DC, on May 30, 2025.
Ceral Gnes | Anadoru | Getty Images
The stupid stubcoin squealed with President Donald Trump’s new dollars calms the influx, with little organic demand, new data shows.
According to Kaiko analyst Adam Morgan McCarthy, the USD1 token, launched by Trump’s decentralized finance company World Liberty Financial, has so far failed to break out of the narrow speculative niche.
“Trump is about to launch this stubcoin in a massive, growing market already at $400 million, and his tokens have been really successful so far in the niche niche market,” McCarthy said. “We couldn’t make a leap from a decentralized staging platform like Pancakeswap to an intensive venue that serves the mass market.”
According to a new study from Kaiko, US dollar-backed USD1 has a decentralized exchange based on Binance’s smart chain, with an average daily on-chain volume of over $14 million. Binance itself is behind at $8 million.
The limited reach of coins is exacerbated by a lack of actual users.
Kaiko’s data confirms that over half of USD1’s liquidity in Pancakeswap can be obtained from just three wallets.
“These were the market for making wallets, so they’re probably tied to USD1 and the world’s Liberty Financial Team, so it’s not really organic volume,” McCarthy added.
Donald Trump Jr. told CNBC’s “Scoobox” on Tuesday that USD1 is a strategic asset for US monetary policy as well as families.
“I think Stubcoin will actually be the savior of the dollar hegemony of the world, and it’s not a detractor,” he said.
However, unlike Stablecoin giants like Tether and Circle, USD1 has not yet demonstrated widespread adoption. Ripple’s new RLUSD token averaged around $50 million on a daily intensive exchange volume.
According to analysts at Kaiko, one of the main reasons USD1 slows its rivals is that it usually lacks an institutional partner or promotional incentive to generate early traction in the Stablecoin market.
Beyond Stablecoin, World Liberty has launched its own native token individually called WLFI. World Liberty leaks 75% of its profits to family-related entities.
It is particularly noteworthy that $Trump Coin failed to produce meaningful traction in vinance, given the family relationship with the Abu Dhabi-based MGX fund, which used USD1 in its $2 billion investment in March.
Kaiko’s McCarthy told CNBC that this type of deal would typically increase visibility and volume.
“But with USD1, nothing happened with that,” McCarthy said. “It’s not causing the type of assets speed in the chain.”
The Trump family crypto venture has been keeping an eye on the Trump meme token recently won a “special VIP tour” and has held a contest to have dinner with the president.
D-Mass. Senator Elizabeth Warren described the winner’s dinner as a “corruption orgy” and accused the president of using it “to enrich the president through Crypto.”
According to INCA Digital, more than $5.2 billion in realised Trump Coin profits have flowed into Top Wallets, but more than 590,000 people collectively lost $3.9 billion.
The gap between winners and losers raised concerns about wealth concentration and retailer exploitation. The dynamics critics say reflect the very financial system Crypto is trying to disrupt.
Watch: Trump Media’s Bitcoin Bet expands the family’s growing crypto empire
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