Loans from Galaxy and Ripple were crucial in helping crypto exchange MoonPay manage overwhelming demand following the launch of Donald Trump’s official memecoin on Jan. 18, a new podcast reveals.
The TRUMP token debuted just days before Trump’s swearing-in, marking an unprecedented move as the first-ever memecoin directly linked to a U.S. president. The token was launched on Moonshot, with MoonPay serving as the exclusive crypto payments provider.
Market capitalization for TRUMP skyrocketed from around $200 million at issuance to over $10 billion within 48 hours, securing both spot and futures listings on major exchanges and generating over $20 billion in trading volume within two days.
The overwhelming demand hit on a Saturday, when MoonPay’s fiat accounts were inaccessible due to the weekend, compounded by a public holiday the following Monday for the presidential inauguration. As a result, MoonPay was unable to access over $100 million in liquidity needed to sustain TRUMP’s trading demand, forcing the company to seek a short-term loan to keep operations running smoothly.
MoonPay president Keith Grossman, CEO Ivan Soto-Wright, and CFO Mouna Siala determined that the company required approximately $100 million in USD Coin (USDC) stablecoin. They then reached out to Galaxy Digital’s Mike Novogratz for a loan. Once an agreement was secured, MoonPay quickly finalized the necessary paperwork and confirmed its ability to repay after consultation with a BlackRock executive, where the company held its reserve funds.
As demand for TRUMP continued to surge, the launch of first lady Melania Trump’s MELANIA token further strained MoonPay’s liquidity. The initial $100 million loan proved insufficient, prompting MoonPay to seek an additional $60 million. Grossman then turned to Ripple’s Brad Garlinghouse, admitting he had underestimated the scale of the demand for Trump’s token.
After conducting a thorough vetting process, Ripple provided the additional $60 million, with MoonPay’s Soto-Wright pledging his entire personal assets as collateral. The company was also required to verify that no liens existed on its reserve capital.
MoonPay fully repaid all loans on Jan. 21, the first business day after the long weekend when it finally regained access to its reserve funds. That week, MoonPay onboarded 750,000 new users.
Despite its explosive debut, TRUMP’s price has plummeted 79% since its peak on Jan. 19.
