Galaxy and Ripple provided $160M loans to launch TRUMP token on MoonPay
The TRUMP token's debut marked a historic moment
In a strategic move to support the launch of President Donald Trump's official memecoin, TRUMP, crypto exchange MoonPay secured $160 million in loans from Galaxy Digital and Ripple.
This financial backing was crucial in meeting the unexpected surge in demand following the token's release on January 18, 2025.
Key takeaways
- Significant financial support: Galaxy Digital and Ripple provided MoonPay with loans totaling $160 million to facilitate the TRUMP token launch.
- Unprecedented market response: TRUMP's market capitalization soared from approximately $200 million at issuance to over $10 billion within 48 hours, with trading volumes exceeding $20 billion in the same period.
- Liquidity challenges overcome: The launch occurred on a weekend preceding a public holiday, limiting MoonPay's access to necessary fiat liquidity, which was mitigated by the secured loans.
How the loans were granted
The TRUMP token's debut marked a historic moment, making President Trump the first sitting president associated with a memecoin. The token's rapid ascent in market capitalization and trading volume underscored the intense interest from investors and the broader crypto community.
The timing of the launch presented significant liquidity challenges for MoonPay. With the event occurring on a Saturday and followed by a public holiday, the company faced constraints in accessing over $100 million in fiat liquidity necessary to support the token's trading demand.
To navigate this hurdle, MoonPay's leadership, including President Keith Grossman, CEO Ivan Soto-Wright, and CFO Mouna Siala, orchestrated loans amounting to $160 million—$100 million from Galaxy and an additional $60 million from Ripple.
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Implications for the crypto market
These loans were instrumental in ensuring that MoonPay could meet the overwhelming demand for the TRUMP token. The company's swift action and the support from Galaxy Digital and Ripple highlight the collaborative efforts within the crypto industry to manage large-scale events and maintain market stability.
The market capitalization of the token grew from 200 million USD to over 10 billion USD in two days. This caused excitement on exchanges and the growth of spot and futures transactions. At the same time, the trading volume for two days exceeded 20 billion U.S. dollars.
The price of TRUMP has since plummeted nearly 80% and is now trading around $15.41
TRUMP Price. Source: CoinGecko
The successful launch of the TRUMP memecoin, bolstered by substantial loans from Galaxy and Ripple, exemplifies the dynamic and rapidly evolving nature of the cryptocurrency landscape.
As the industry continues to mature, such collaborations may become increasingly common to address liquidity challenges and support significant market events.
We also informed that World Liberty Financial launches token to support leading crypto projects.
