Galaxy, Ripple loans crucial for MoonPay amid TRUMP coin frenzy
According to The Block, loans from Galaxy and Ripple were instrumental in enabling cryptocurrency exchange MoonPay to manage the overwhelming demand for President Donald Trump’s official memecoin, TRUMP.
The token, which launched on January 18, saw its market capitalization skyrocket from nearly $200 million to over $10 billion within the first 48 hours, eventually achieving over $20 billion in trading volumes over a two-day period.
The surge in demand coincided with a weekend and a public holiday on the subsequent Monday, which rendered MoonPay's fiat accounts inaccessible. As a result, the company faced a liquidity shortfall of over $100 million needed to facilitate trading of the TRUMP token. To address this, MoonPay executives estimated a requirement of around $100 million in USD Coin stablecoin.
In response to the liquidity crisis, MoonPay President Keith Grossman, along with CEO Ivan Soto-Wright and CFO Mouna Siala, reached out to Mike Novogratz for a loan. After MoonPay demonstrated their ability to repay, backed by verification from a BlackRock (NYSE: BLK ) executive regarding their reserve funds, an agreement was secured.
Despite this initial loan, the subsequent launch of Melania Trump’s MELANIA tokens and continued demand for TRUMP led to the initial $100 million proving insufficient. This prompted MoonPay to seek an additional $60 million from Ripple.
Ripple's CEO Brad Garlinghouse agreed to provide the additional funds following a comprehensive vetting process, which included a personal asset pledge by MoonPay’s Wright. MoonPay also had to confirm that there were no liens on its reserve capital to secure the loan.
The loans were fully repaid by MoonPay on January 21, after the company regained access to its reserve funds following the long weekend. During this period, MoonPay also experienced significant growth, with 750,000 new users joining the platform.
Despite its initial success, the price of the TRUMP token has since fallen by 79% from its peak on January 19.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.