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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.
By Shaurya Malwa|Edited by Parikshit Mishra
Updated Feb 13, 2025, 6:37 a.m. UTCPublished Feb 12, 2025, 10:33 a.m. UTC
What to know:
- Loans from Galaxy and Ripple played a role in helping crypto exchange MoonPay handle demand for Donald Trump’s official memecoin.
- 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
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.
STORY CONTINUES BELOW
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 was launched on Moonshot, for which MoonPay is the exclusive crypto payments provider.
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 Soto-Wright for his entire personal assets. MoonPay further had to prove 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.
Prices of TRUMP, despite its blockbuster launch, are down 79% since its Jan. 19 peak.
Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM,
BANANA, ROME, BURGER, SPIRIT, and ORCA.
He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.
