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Ripple, Galaxy Loan $160M to MoonPay for TRUMP MemeCoin Launch
Generated by AI AgentCoin World
Wednesday, Feb 12, 2025 5:47 am ET1min read
Ripple and Galaxy executives have reportedly loaned $160 million to MoonPay, a crypto exchange, to support the launch of the TRUMP memecoin. The loan was crucial in helping MoonPay meet the massive demand for the token, which was launched just days before the presidential inauguration.
The TRUMP token, issued on Jan. 18, quickly gained traction, with its market capitalization surging from nearly $200 million at issuance to over $10 billion within 48 hours. This rapid growth led to significant trading volumes, exceeding $20 billion over two days, and resulted in spot and futures listings across various exchanges.
However, MoonPay faced a liquidity crunch on a Saturday, when its fiat accounts were inaccessible due to the weekend and a public holiday on the following Monday. To meet the trading demand, MoonPay turned to short-term loans as the only viable option.
MoonPay president Keith Grossman, along with CEO Ivan Soto-Wright and CFO Mouna Siala, estimated that the company needed around $100 million worth of USD Coin stablecoin. They approached Mike Novogratz, who agreed to provide the loan after a thorough vetting process, including verification of MoonPay's ability to repay the loan and a pledge of Wright's personal assets.
Despite the initial loan, demand for the TRUMP token continued to escalate, leading to the launch of first lady Melania Trump's MELANIA tokens. This increased demand required MoonPay to seek an additional $60 million in funds. Grossman then contacted Ripple's Brad Garlinghouse, who contributed the additional amount after a thorough vetting process, including a pledge of MoonPay's Wright for his entire personal assets and proof that there were no liens on its reserve capital.
MoonPay repaid all loans in full on Jan. 21, a Tuesday after the long weekend, when it could finally access its reserve funds. The company onboarded 750,000 new users that week. Despite its blockbuster launch, the price of TRUMP has since declined by 79% from its Jan. 19 peak.
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