Ripple, Galaxy Execs’ Helped Moonpay Handle the TRUMP Memecoin Launch by Loaning Them $160M
The post Ripple, Galaxy Execs’ Helped Moonpay Handle the TRUMP Memecoin Launch by Loaning Them $160M appeared on BitcoinEthereumNews.com.
Loans from Galaxy and Ripple played a pivotal role in helping crypto exchange MoonPay handle the demand stemming from the launch of Donald Trump’s official memecoin after its Jan.18 issuance, a new podcast reveals. TRUMP launched days before the President’s swearing-in ceremony. The token launch was a surprise move that made him the first-ever president to be directly related to a memecoin. The token’s market capitalization zoomed from nearly $200 million at issuance to over $10 billion within 48 hours — bagging spot and futures listings across exchanges and over $20 billion in trading volumes over two days. The massive demand came on a Saturday, when MoonPay’s fiat accounts were inaccessible due to the weekend with a public holiday on the following Monday for the swearing-in. The situation meant MoonPay could not readily access over $100 million in liquidity required to meet TRUMP’s trading demand — leaving a short term loan as the only option to ensure business went as usual. MoonPay president Keith Grossman, along with CEO Ivan Soto-Wright and CFO Mouna Siala, estimated the company needed around $100 million worth of USD Coin stablecoin. That’s when Novogratz was contacted for a loan. After securing an agreement, MoonPay quickly prepared the necessary documentation and verified their ability to repay after vetting with a BlackRock executive, where MoonPay held its reserve funds. However, demand for the TRUMP token continued to escalate and first lady Melania Trump’s MELANIA tokens were, too, launched, leading to the $100 million being insufficient to meet liquidity requirements. That pushed MoonPay to seek another $60 million in funds. Grossman then connected with Ripple’s Garlinghouse, stating he had “underestimated the demand of this Trump token.” Ripple contributed the additional $60 million needed after a thorough vetting, including a pledge of MoonPay’s Wright for his entire personal assets.…
Filed under: News - @ February 12, 2025 11:22 am