MoonPay Secures Loans to Manage Surge in TRUMP Token Demand
Surge in TRUMP Token Demand Overwhelms MoonPay
The launch of the TRUMP token on January 18 sparked unprecedented demand, with its market capitalization soaring from $200 million to over $10 billion in 48 hours. This surge, combined with a long weekend and public holiday, left MoonPay facing a liquidity shortfall of over $100 million.
Addressing the Liquidity Crisis
MoonPay executives, led by Keith Grossman, sought a $100 million loan from Mike Novogratz, backed by assurances from a BlackRock executive. Despite initial relief, the launch of Melania Trump’s MELANIA token and sustained TRUMP demand necessitated an additional $60 million loan from Ripple.
Repayment and Platform Growth
MoonPay repaid the loans by January 21, regaining access to reserve funds. This period also saw significant user growth, with 750,000 new sign-ups. Despite initial success, the TRUMP token's price dropped 79% from its peak, highlighting market volatility.
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