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- Donald Trump’s memecoin, TRUMP, surged past $10 billion in market cap within 48 hours, causing extreme liquidity strain on exchanges.
- MoonPay secured emergency loans totaling $160 million from Galaxy Digital and Ripple to handle demand before repaying in full.
The launch of Donald Trump’s official memecoin, TRUMP, on January 18 sent the crypto market into a frenzy. Within 48 hours, its market capitalization skyrocketed from $200 million to over $10 billion, with more than $20 billion in trading volume. Spot and futures listings followed rapidly on major exchanges, creating unprecedented demand.
Ripple Brad Garlinghouse and Mike Novogratz lent Moonpay $160M to launch the $TRUMP Token 👀 pic.twitter.com/jaA5rl9QGz
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) February 12, 2025
MoonPay, the crypto exchange facilitating transactions for the token, found itself in a liquidity crunch at the worst possible time. The launch took place on a Saturday, and a public holiday on Monday for the swearing-in ceremony meant the firm’s fiat accounts were inaccessible. This left MoonPay unable to tap into over $100 million in liquidity it desperately needed to meet the soaring demand.
MoonPay’s leadership, including CEO Ivan Soto-Wright, President Keith Grossman, and CFO Mouna Siala, scrambled to secure emergency funds. The team estimated that at least $100 million in USD Coin (USDC) was required to keep operations running. With no immediate access to its reserve funds at BlackRock, MoonPay had no choice but to seek a short-term loan.
A Lifeline from Galaxy’s Novogratz
Faced with a make-or-break moment, MoonPay turned to Galaxy Digital’s Mike Novogratz. The veteran crypto investor agreed to provide the needed funds after confirming MoonPay’s ability to repay. Legal documents were drafted at lightning speed, and within hours, the deal was in place.
But the chaos was far from over. As TRUMP continued its meteoric rise, another twist emerged—the launch of First Lady Melania Trump’s own memecoin, MELANIA. The additional market activity pushed liquidity demands even higher, forcing MoonPay to seek an extra $60 million in funding.
Grossman reached out to Ripple CEO Brad Garlinghouse, admitting that he had “underestimated the demand of this Trump token.” Ripple agreed to provide the funds but only after a meticulous vetting process, which included securing a personal pledge of assets from MoonPay’s Wright and verifying that there were no liens on MoonPay’s reserve capital.
Ripple Steps In With an Extra $60 Million
Ripple’s additional $60 million injection brought the total loan amount to $160 million. The funds were routed through Galaxy Digital before reaching MoonPay, ensuring a structured financial pipeline. This last-minute financial backing kept the market functioning smoothly despite overwhelming demand.
By Tuesday, January 21, MoonPay was finally able to access its reserve funds and repaid both loans in full. The crisis had been averted, and MoonPay emerged from the storm with 750,000 new users onboarded in just one week.
How @Moonpay Onboarded Over 750,000 New People Into Crypto In A Week + The $160m $USDC Loan They Took To Make It Happen
During Catstanbul, I sat down with @KeithGrossman, president of enterprise at Moonpay, and @Andreslamothe91, director of partnerships at Moonpay.
As they… pic.twitter.com/kArE0YXbHk
— MR SHIFT 🦁 (@KevinWSHPod) February 11, 2025
Despite its explosive debut, TRUMP’s price did not maintain its momentum. After peaking on January 19, it has since plunged by 79%, raising questions about the long-term sustainability of memecoins tied to political figures.
