GuShiio.com If MoonPay cannot provide enough liquidity to support the continuous purchase of tokens, the 750,000 new users within one week of TRUMP’s launch may not be able to successfully obtain tokens.
Author:Logan Hitchcock
Compiled by: Shenchao TechFlow
MoonPay is a crypto payment company that successfully obtained a total of US$160 million in loan support from Galaxy Digital and Ripple in response to explosive demand for Trump’s official Solana chain Meme coin TRUMP during the launch weekend.
MoonPay President Keith Grossman revealed the details of the three-party collaboration on the When Shift Happens podcast. He mentioned that MoonPay CEO Ivan Soto-Wright made a major commitment to this end, and the company must also ensure that there are no liens on its reserve funds. Grossman said: The trading volume is really huge. Our crypto liquidity is locked in BlackRock accounts by traditional financial methods and it was still Saturday.& rdquo;
At the same time, due to the promotion strategy of Trump’s Meme coin team, MoonPay’s crypto reserve funds were quickly consumed. Users can purchase TRUMP through a mobile app called Moonshot, and MoonPay is the exclusive encrypted payment service provider for this app.
Moonshot is specially designed for newcomers to encryption and simplifies the purchase process of Meme coins. Users only need to register an account by email and recharge it with a credit card or debit card, without having to face the complex operations of a decentralized exchange. It is very suitable for users who are first exposed to cryptocurrency.
When users purchase TRUMP Tokens on Moonshot, their funds are converted into MoonPay’s cryptographic reserves, mainly the stablecoin USDC. These USDCs were then used to purchase TRUMP Tokens on the Solana blockchain.
If MoonPay cannot provide enough liquidity to support the continuous purchase of tokens, the 750,000 new users within one week of TRUMP’s launch may not be able to successfully obtain tokens. This will not only affect TRUMP’s rapid growth in its early stages, but may also have a negative impact on other MoonPay users.
Grossman said that if MoonPay runs out of funds, the app may prompt users to apologize and cannot complete the transaction.
To avoid this, he worked with MoonPay CEO Ivan Soto-Wright and CFO Mouna Siala to predict the amount of money needed. Initially, they estimated it would require $50 million, but after reassessing the rapid growth of TRUMP Token within 24 hours of launch, that figure quickly doubled to $100 million.
However, because MoonPay’s reserve funds were locked in the traditional financial system and could not be immediately accessed, Grossman decided to contact Galaxy Digital’s Mike Novogratz. After simple communication, the two parties quickly reached a loan agreement. MoonPay’s team had to urgently process relevant documents while confirming through BlackRock’s relationship that the company was able to repay the loan.
But even then,$100 million is still not enough. As demand for TRUMP Tokens continued to soar the next day, MoonPay asked Ripple Labs CEO Brad Garlinghouse for help.
“We underestimated the need for Trump tokens.& rdquo; The MoonPay team told Garlinghouse.
Ripple’s CEO agreed to provide additional financial support, but on the condition that MoonPay obtain Galaxy’s consent to ensure previous loan arrangements would not be affected. In the end, Ripple provided Galaxy with an additional $60 million loan, which was subsequently transferred to MoonPay.
As traditional financial institutions in Europe and the United States resumed operations on Monday and Tuesday, MoonPay regained access to its funds and repaid the loan in full on Tuesday afternoon.
According to CoinGecko, the average trading volume of TRUMP Token exceeded US$20 billion in the first five days after launch and quickly reached a fully diluted valuation of more than US$73 billion in less than 48 hours (i.e., the theoretical total market value assuming all tokens were unlocked).
A few days after its launch, TRUMP successfully launched the spot markets of well-known centralized exchanges such as Binance and Coinbase. The addition of these exchanges further lowers the threshold for novice users to obtain the Token.
A MoonPay representative confirmed to Decrypt that Grossman’s account was accurate, but representatives for Galaxy and Ripple have not yet responded to Decrypt’s request for comment.
Currently, the trading price of TRUMP Token is US$15.37, down more than 79% from its historical high.
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