KeyTakeaways:
- MoonPay faced a liquidity crisis after Trump memecoin’s explosive launch.
- Galaxy Digital and Ripple provided urgent financial support to MoonPay.
- The crisis led to MoonPay onboarding 750,000 new customers within a week.
MoonPay, the crypto onramp platform, found itself scrambling to secure $160 million in USDC after overwhelming demand following the launch of President Trump’s official Solana-based memecoin. With liquidity reserves rapidly depleting, Galaxy Digital and Ripple executives swiftly intervened to provide emergency funding, ensuring that MoonPay could meet the surge in demand.
The chaos began following the launch of Trump’s memecoin on January 20, coinciding with his inauguration. Within an hour of its release, the token’s market cap surged to a staggering $4.6 billion, reaching a peak valuation of $75 billion.
This explosion in trading activity put MoonPay’s systems under strain as the platform processed an influx of new users. The launch, alongside the subsequent release of Melania Trump’s memecoin, MELANIA, resulted in a dramatic 80% and 89% drop in the value of TRUMP and MELANIA, respectively.
Galaxy and Ripple Provide Critical Support
As MoonPay’s reserves quickly dwindled, executives were left scrambling for solutions. The company’s chief financial officer, Mouna Ammari Siala, informed MoonPay President Keith Grossman that $50 million in USDC was urgently needed to meet demand by midnight on January 18. That estimate was revised upward to $100 million.
Faced with limited access to liquidity due to locked funds in BlackRock accounts, Grossman reached out to Galaxy Digital’s Mike Novogratz. Within minutes, Galaxy’s team stepped in to arrange the necessary funding.
Galaxy’s assistance came after MoonPay CEO Ivan Soto-Wright pledged his net worth, liquidating some of his Bitcoin holdings to keep operations running. By late Saturday night, the first tranche of funding arrived. However, the situation worsened on Sunday morning, requiring an additional $60 million to avoid running out of money. At this point, Soto-Wright contacted Ripple CEO Brad Garlinghouse for help.
Ripple’s Timely Intervention
Garlinghouse responded immediately, facilitating Ripple’s involvement in the crisis. After a quick meeting, Ripple arranged for funds to be wired from Galaxy, with the transfer completed by 11:58 a.m. on January 19. MoonPay could repay the loans by Tuesday afternoon, keeping its services running smoothly.
Despite the turmoil, MoonPay reported a surge of 750,000 new customers after the memecoin launch. The event highlighted the risks of unexpected liquidity demands and underscored the importance of strategic partnerships in the fast-moving world of cryptocurrency.
