MoonPay Crash Averted- Ripple and Galaxy Lend $!60 million Towards Rescue

The latest buzz around the Trump memecoin this week has forced multilayered liquidity across the meme coin industry. Thanks to Ripple’s Garlinghouse and Mike Novogratz of Galaxy, the crisis has been managed.  

The Trump meme coin came around this weekend. MoonPay, the coin had a reserve capital to handle any abrupt critical downfall. But the reserve fund was not available at the moment. Till Monday it became impossible for the coin to manage the huge demand in the market. As a result, a series of liquidations happened.  

MoonPay Now Safe? 

The president of the MoonPay crypto appeared in a podcast recently. He said that his team wanted to create a launch platform that would rival Pump.fun since its inception.  

The trading platform for MoonPay, Moonshot, is the reason why the coin is still stable. The platform has successfully attracted this Trump token. Despite dwindling supplies and inaccessible reserves, Galaxy and Ripple helped MoonPay avert the crisis and the incumbent pitfall.  

The Saturday launch backfired  

This Trump coin chose Saturday for its launch, as a weekend launch could gather higher traction than a weekday launch. However, the developers did not heed the fact that reserve supplies might not be accessible on the weekend. Thankfully, Galaxy and Ripple responded to MoonPay’s CEO and quickly amassed $100 million to tackle the liquidation of the platform.  

How did the deal go?  

The deal was actually a win-win for both parties. MoonPay could finally retain its investors. On the other hand, the CEO liquidated the BTC holdings as a mortgage against the loan. But good things trailed. On Sunday and Monday, the platform witnessed enough demand that can make the developers wishful of a strong short-term future. That’s when the second challenge appeared.  

The team hoped that the reserve would unlock on Monday for sure. But dramatically that did not happen, and they had to turn to Ripple’s Brad Garlinghouse again, for a land of another $60 million.  

A short-sighted vision?  

Unlike traditional stocks and equities, crypto trading is a real-time affair that takes place 24 hours every day. That’s the reason why the demand surfaced during the weekend. However, it’s the same reason why MoonPay could manage its crisis by gathering $160 million on a lien, in such a short time over the weekend. The usual investment industry could not have supported such a huge short-term transfer. 

Trader’s takeaway  

Traders must feel excited, irrespective of how the crisis was managed. Meanwhile, the coin garnered a market cap of $40 billion at the start only. Within one day, the value increased by $35 billion. But sadly, the token could not retain the same volume on Monday. Around 70% of the market cap value has been lost. We’ll keep an eye out for the next 2 days to see if the coin revives or loses further.