In a shocking move, President Donald Trump launched his memecoin, TRUMP, on Solana blockchain days before his inauguration. This made him the first U.S. president linked to a cryptocurrency. In just 48 hours, the token’s value exploded from $200 million to over $10 billion. Trading volume passed $20 billion, and major exchanges rushed to list it. MoonPay Runs Out of Cash As Coindesk reported , MoonPay, the traditional platform handling most of the TRUMP trades, had a major problem: It did not have enough cash. Since the launch happened on a Saturday, banks were closed, and Monday was a public holiday for Trump’s swearing-in. MoonPay needed to raise more than $100 million quickly, or the TRUMP token launch could fail. That is when it turned to two major crypto companies, Galaxy Digital and Ripple, for emergency loans. MoonPay’s leaders, President Keith Grossman, CEO Ivan Soto-Wright, and CFO Mouna Siala, quickly realized they needed $100 million in stablecoins. They contacted Mike Novogratz, the CEO of Galaxy Digital, and secured a loan deal. However, before Galaxy could send the money, MoonPay had to prove it could repay. They contacted an executive at BlackRock, where MoonPay held its reserve funds. After checking everything, the loan was approved, and MoonPay received the $100 million. However, the demand for the token kept growing. Melania’s Token Launch Creates More Problems Shortly after, U.S. First Lady Melania Trump launched her memecoin, MELANIA, making things even more complicated for the exchange. More people wanted to trade the new token, but the $100 million was insufficient. MoonPay needed another $60 million, and fast. Grossman contacted Ripple’s CEO, Brad Garlinghouse, admitting they had “underestimated the demand for this Trump token.” Ripple agreed to help, but only after checking MoonPay’s financial health. MoonPay’s CEO, Soto-Wright, even promised his assets as a guarantee. Ripple finally approved the loan, sending MoonPay the extra $60 million. By Tuesday, January 21, after the long weekend, MoonPay could access its reserve funds again. It repaid both loans in full and avoided any major financial trouble. Interestingly, the TRUMP token launch brought massive growth to MoonPay. The company gained 750,000 new users in just one week, proving its importance in the crypto world. What Happened to TRUMP’s Price? Despite its exciting start, TRUMP’s price has dropped 79% since January 19, showing that the hype surrounding the memecoin has faded. Public Citizen, a consumer watchdog group, recently filed complaints against the digital token with the Department of Justice (DOJ) and the Office of Government Ethics (OGE). The group alleged President Trump’s token promotion might violate federal law regarding soliciting gifts. Notably, before then, the President had admitted to knowing little about the token. These happenings caused the TRUMP memecoin price to drop significantly, negatively impacting the market sentiment. The post MoonPay Keeps Up With TRUMP Trading With $160M Loan appeared first on TheCoinrise.com .
