Ripple, Galaxy Execs Loaned $160M to MoonPay Amid Trumps Meme Coin Liquidity Demand
- MoonPay secured $160M in loans from Galaxy and Ripple to handle TRUMP memecoin demand.
- TRUMP token surged to $10B market cap in 48 hours triggering a liquidity crisis for MoonPay.
- MoonPay onboarded 750,000 new users after receiving critical loans during TRUMP launch.
The crypto exchange platform MoonPay encountered unexpected cash flow problems after Donald Trumps TRUMP memecoin was officially launched. The rapid success of the TRUMP token created an extreme financial strain on MoonPay prompting them to seek help from Galaxy Digital and Ripple immediately.
Rapid Demand for TRUMP Memecoin Triggers Financial Scramble
TRUMP memecoin launched on January 18 triggered intense market demand which propelled its market value from $200 million to more than $10 billion within 48 hours. The tokens historical market rise led to its acceptance across multiple exchanges together with over $20 billion worth of trading volume during its first two days. The launch timing of Trump Coin occurred during a weekend followed by public holidays, so the exchange lost access to its fiat accounts and failed to meet required liquidity needs surpassing $100 million.
MoonPay contacted Mike Novogratz, who secured a $100 million USD Coin (USDC) loan to respond to their liquidity problem immediately. The rapid financial help enabled MoonPay to sustain trading activities throughout the initial demand surge for the TRUMP token.
The CEO of Moonpay, Ivan Soto-Wright, provided his Bitcoin holdings worth $100 million to serve as security for a loan the company received.
Additional Financial Support Amid Continuing Demand
The surge in trading volumes became even more intense after the crypto exchange introduced the Melania Trump MELANIA token, which caused its liquidity requirements to escalate rapidly. MoonPay executives identified that the existing loan amount was insufficient and they contacted Ripple for additional support. The situations urgency led to the contracting of Ripples CEO, Brad Garlinghouse. Ripple issued a $60 million USDC payment as a loan when they conducted extensive investigations into MoonPays financial state and held assets.
Ripples extra funding was an essential safeguard for conducting business during the continuous increase in token requests. Moreover, the crypto exchange controlled its financial crisis through strong collaborative efforts between Galaxy and Ripple, showing operational strength in the cryptocurrency sector.
Stabilizing Operations and Expanding the User Base
The company showed strong financial capability by successfully replying to Galaxy and Ripple loans on January 21 after the holiday weekend. The quick solution and timely repayment of large-scale emergency loans proved the strong relationship and trust between MoonPay and its funding partners.
After the memecoin launch the crypto exchange experienced remarkable platform growth, with 750,000 new users signing up. The incident tested the companys operational capabilities under high-stress conditions in the crypto market, strengthening its operational stability.
Read more: https://www.tronweekly.com/moonpay-receive-support-from-galaxy-and-ripple/
Text source: TronWeekly
