The increasing TRUMP token demand made the company recognize that its initial $100 million funding was insufficient. MoonPay sought further financing from Ripple after assessing their initial funding needed to be inadequate.
The company received an additional $60 million from discussions with Ripple CEO Brad Garlinghouse, bringing its total borrowed amount to $160 million. Soto-Wright used his assets as loan collateral to MoonPay, which agreed to keep its reserve funds free of liens. MoonPay immediately fully repaid all the loans on Tuesday, January 21.
MoonPay faced liquidity challenges amid TRUMP token surge
MoonPay experienced an unexpected shortage of liquidity funds when the TRUMP meme coin achieved widespread popularity. As the TRUMP meme coin reached unprecedented popularity, MoonPay encountered devastating funding problems. Introducing the Moonshot trading app attracted numerous new users, triggering higher demand.
Despite having reserves, MoonPay could not access its funds stored in BlackRock accounts due to traditional banking restrictions. Since this happened on a Saturday, the company could not move its capital quickly. To ensure smooth transactions, the team sought urgent financial assistance.
Galaxy Digital and Ripple provided emergency funding
The estimated $50 million required for liquidity turned into $100 million when MoonPay revised their projections. CEO Ivan Soto-Wright and President Keith Grossman and CFO Mouna Siala united to pursue funding acquisition. Mike Novogratz from Galaxy Digital gave his initial approval to Grossman when the CEO approached him about providing financial support. BlackRock provided MoonPay with access to verify its reserve capital which proved its ability to make repayment.
The increasing TRUMP token demand made the company recognize that its initial $100 million funding was insufficient. MoonPay sought further financing from Ripple after assessing their initial funding needed to be inadequate. The company received an additional $60 million from discussions with Ripple CEO Brad Garlinghouse that increased their total borrowed amount to $160 million. Soto-Wright used his assets as loan collateral to MoonPay which agreed to keep its reserve funds free of liens. MoonPay immediately fully repaid all the loans on Tuesday, January 21.
TRUMP Token’s performance and market decline
During its peak, the TRUMP meme coin saw over $20 billion in trading volume within its first five days. Its diluted valuation soared past $70 billion in less than 48 hours, leading to significant exchange listings, including Coinbase and Binance. However, the token has since dropped nearly 80% from its highest price, now trading at $15.37.
The TRUMP token maintains a market value of $3.07 billion and daily trading reaches $830 million. The Melania token and its succeeding TRUMP token have declined since their recent launches. The current price of this asset stands at $1.39 after a 40% decrease during the last two weeks.