CEOs backed Trump token launch with $160M loan

Mike Novogratz, CEO of Galaxy Digital, and Brad Garlinghouse, CEO of Ripple (CRYPTO:XRP), provided MoonPay with $160 million to manage the high demand for the TRUMP (CRYPTO:TRUMP) and Melania meme coins around the January 20 inauguration.

According to Keith Grossman, president of enterprise at MoonPay, the platform saw 750,000 registrations during the meme coin launch weekend.

The surge in demand was so significant that it resembled a distributed denial-of-service (DDoS) attack.

Grossman explained that MoonPay's liquidity was tied up in BlackRock accounts, making it inaccessible during the holiday weekend.

Novogratz lent $100 million, and Garlinghouse provided $60 million to address the capital shortfall.

MoonPay repaid the funds on January 21 after accessing its accounts.

The TRUMP meme coin quickly gained popularity, reaching a market capitalisation of nearly $9 billion and a fully diluted value of over $70 billion shortly after its launch.

The launch and rise of the TRUMP memecoin has drawn both criticism and calls for investigation.

Lawyer David Lesperance suggested the token launch violated the Emoluments Clause of the U.S. Constitution, designed to prevent foreign influence through financial incentives.

Senator Elizabeth Warren also called for an investigation into the token launch, citing concerns about potential bribery.

Public Citizen, a consumer protection group, echoed these concerns, arguing that the tokens personally benefit President Trump.

According to a report by Reuters, the TRUMP token generated between $86 million and $100 million in trading fees by January 30.

However, by February 4, the coin's price had dropped to approximately $19, about 75% below its all-time high.

Despite this, the launch of the TRUMP coin has been considered by some as evidence of crypto-favorable regulation and a potential strategic Bitcoin (CRYPTO:BTC) reserve.