The USDF stablecoin, backed by DWF Labs, recently lost its peg to the U.S. dollar, plummeting to $0.943. This drop follows a rapid market cap increase to over $540 million in just four months, raising serious questions about USDF's reserves and transparency. DWF Labs, involved in political-crypto ventures, particularly with Donald Trump’s projects, is now facing scrutiny due to this incident. Despite claims from Falcon Finance, the issuer, that USDF is 116% collateralized, doubts persist as only about $25 million of the claimed $634 million in reserves is verifiable on-chain. The majority remains in undisclosed off-chain assets, leaving investors and researchers unable to assess the collateral's nature. The lack of transparency, especially after past stablecoin failures like Terra Luna, has led to growing unease. Although Falcon promises a detailed reserve report soon, confidence has already been shaken. The brief depeg incident highlights the need for clearer regulations in the stablecoin market as the U.S. considers the GENIUS Act. Read more AI-generated news on: https://app.chaingpt.org/news