The Weekend Liquidity Crisis

The dramatic liquidity crunch unfolded on Saturday, January 18, the day TRUMP was issued. MoonPay found itself in a bind as trading volume exploded, and its fiat accounts remained inaccessible due to the weekend—compounded by the upcoming public holiday on Monday for Trump’s swearing-in ceremony. The firm needed over $100 million in liquidity to sustain the overwhelming trading demand but had no immediate access to its reserves.

With MoonPay’s fiat operations locked down, a short-term loan became the only viable solution to ensure trading continued uninterrupted.

First Loan: Galaxy Digital Steps In

Recognizing the urgency, MoonPay executives, including President Keith Grossman, CEO Ivan Soto-Wright, and CFO Mouna Siala, reached out to Galaxy Digital founder Mike Novogratz. The firm sought an initial $100 million in USD Coin (USDC) to maintain trading operations.

After quick negotiations, Novogratz agreed to provide the funds. To finalize the loan, MoonPay swiftly assembled the necessary documentation, undergoing an expedited vetting process with a BlackRock executive, as MoonPay’s reserve funds were held with the investment giant.

Unprecedented Demand Leads to a Second Loan

However, the demand for the TRUMP token was far greater than anticipated. Within 48 hours, the token’s market capitalization soared from $200 million at launch to over $10 billion. Trading volumes surpassed $20 billion, and TRUMP secured listings on multiple exchanges, including both spot and futures markets.

To make matters more complex, former First Lady Melania Trump also entered the scene, launching her own memecoin, MELANIA. The double hit of demand rendered the initial $100 million loan insufficient.

Realizing that additional funds were required, Grossman reached out to Ripple CEO Brad Garlinghouse, admitting that the demand for TRUMP had been vastly underestimated. After a thorough vetting process, Ripple provided another $60 million, securing the deal with a personal pledge from MoonPay’s CEO, Soto-Wright, against his entire personal asset portfolio. Additionally, MoonPay had to demonstrate that its reserve capital was unencumbered by any liens.

Ironically, the saga shows the many viable use cases that crypto unlocks with its ability to move large amounts of liquidity across borders and platforms 24/7.

It also adds another layer of intrigue to the growing relationship between Ripple CEO Brad Garlinghouse and President Trump and his affiliates across the fintech, tokenization, and crypto industries. If you’re looking for positive XRP news, this dynamic is one of the most important relationships in crypto.

Earlier this month we reported that Ripple CEO Brad Garlinghouse is a leading candidate for President Donald Trump’s newly established crypto advisory council. His recent meeting with President Trump at Mar-a-Lago has elevated his prominence among potential appointees. 

If appointed, Garlinghouse could significantly influence discussions on cryptocurrency regulation, including the classification of tokens like XRP under agencies such as the SEC or CFTC. This development underscores Ripple’s growing presence in Washington, D.C., advocating for clearer digital asset regulations. The advisors will collaborate with AI & Crypto Czar David Sacks to shape the nation’s digital asset policies. Sacks recently declared that Trump would usher in a golden age for crypto assets in America. It’s clear that Ripple and XRP, as the largest American crypto company and digital asset, are likely to have a role. 

Garlinghouse with President Trump at Mar-A-Lago, Source: X

Repayment and Aftermath

With the emergency funding in place, MoonPay successfully managed the liquidity crisis, sustaining the meteoric rise of TRUMP and onboarding an impressive 750,000 new users within the week. Once the long weekend ended and the firm regained access to its reserves, it repaid all loans in full on Tuesday, January 21.

Despite its explosive debut, the TRUMP token has not maintained its momentum. Prices have plummeted 79% from their peak on January 19, marking yet another volatile chapter in the ever-unpredictable world of memecoins and political crypto ventures.

Trump is currently $15.21, a steep fall from its early highs, Source: Brave New Coin