The Hook: A Crypto Crisis That Needed a $160M Lifeline—Fast!
Imagine launching a crypto project so big that it nearly bankrupts the company handling transactions for it—overnight! That’s exactly what happened when MoonPay, a popular crypto payment platform, found itself desperately needing $160 million in USDC to keep up with demand for President Trump’s official memecoin, TRUMP. If they couldn’t get the money by the weekend, they would run out of funds, leaving thousands of users stranded.
Enter Mike Novogratz (CEO of Galaxy Digital) and Brad Garlinghouse (CEO of Ripple)—two crypto heavyweights who jumped in to save the day. But how did we get here in the first place?
Step 1: The TRUMP Memecoin Frenzy Begins
On the night before Trump’s presidential inauguration (Jan. 20), a massive event called the “Crypto Ball” took place in Washington. This is where TRUMP, a Solana-based memecoin, officially launched.
- Within an hour, TRUMP’s market cap skyrocketed to $4.6 billion.
- At its peak, TRUMP’s fully diluted valuation (FDV) hit $75 billion—briefly overtaking Dogecoin (DOGE)!
- 750,000 new users rushed to buy TRUMP, using MoonPay as their only onramp.
The problem? MoonPay wasn’t ready for this level of demand. Their liquidity (the funds they use to facilitate transactions) was locked in BlackRock accounts—traditional finance (TradFi) institutions that don’t operate on weekends.
Then, things got worse…
Step 2: The Melania Effect Crashes the System
As if things weren’t crazy enough, the next day Melania Trump launched her own memecoin, MELANIA.
- This caused a massive sell-off in TRUMP, crashing its price.
- MoonPay’s servers were overwhelmed, like a DDoS attack (when too many requests flood a system).
- They realized they needed at least $50M by midnight—and then $100M—just to stay operational.
At this point, MoonPay was running out of money. The company’s president, Keith Grossman, texted Mike Novogratz (Galaxy Digital CEO), who immediately agreed to help.
Step 3: The Crypto Billionaires Save MoonPay
With MoonPay’s reserves nearly empty, Novogratz stepped in:
- Galaxy Digital reviewed MoonPay’s accounts and confirmed they had the funds locked in BlackRock.
- MoonPay’s CEO personally pledged his net worth (including liquidating Bitcoin) to secure the loan.
- By 11 p.m. Saturday, Galaxy sent the first $100 million in USDC.
Crisis averted? Not yet.
By Sunday morning, TRUMP’s FDV had jumped to $70 billion, and MoonPay needed another $60 million—fast!
This time, MoonPay’s CEO reached out to Brad Garlinghouse (CEO of Ripple). Garlinghouse agreed but suggested a faster way:
- Instead of Ripple wiring money to MoonPay directly, Ripple sent funds to Galaxy, which then forwarded the USDC to MoonPay.
- By 11:58 a.m. Sunday, MoonPay had the money they needed.
- By Tuesday afternoon, MoonPay was able to pay back both Galaxy and Ripple in full.
Key Takeaways: Why This Is Important for Crypto Traders
- Liquidity Matters 🏦
- No matter how big a crypto project is, if liquidity is locked or unavailable, it can crash the system.
- MoonPay was a critical bottleneck for TRUMP’s trading, showing how centralized crypto onramps still control access to digital assets.
- Memecoins Can Disrupt the Market 🚀
- A single memecoin launch triggered a multi-billion-dollar trading frenzy.
- TRUMP and MELANIA proved that politics and crypto are now deeply connected.
- Big Players Keep the Market Alive 💰
- Without Galaxy and Ripple stepping in, MoonPay could have gone bankrupt, cutting off access for hundreds of thousands of users.
- Crypto whales and institutions are still critical for liquidity in major events.
- Speed Is Everything in Crypto ⏳
- The entire rescue mission happened within 48 hours, showing how fast the market moves.
- If MoonPay had waited until banks reopened, it would have collapsed.
Final Thought: The Future of Crypto Needs Liquidity and Reliability
This whole event proves how fragile even major crypto platforms can be during high-volume surges. MoonPay onboarded 750,000 users in a week, but without Galaxy and Ripple’s emergency funding, the entire operation could have collapsed.
As a trader, the key lesson is: always be aware of liquidity risks, memecoin volatility, and the power of institutional backing. When the next crypto storm hits, the question is—who will be ready?
