The company responsible for US President Donald Trump’s Truth Social platform has announced its intention to distribute a new cryptocurrency to its shareholders, representing the latest movement by the Trump family into the digital asset sphere.
The cryptocurrency from Trump Media and Technology Group adds to the Trumps’ existing crypto initiatives, which have amassed hundreds of millions in revenue and raised questions about potential conflicts of interest.
On Wednesday, Trump Media revealed the launch of this token, stating that investors will receive one token for every share they own. Trump, the largest shareholder of Trump Media, advocates for more lenient regulations within the cryptocurrency market.
Following this announcement, shares of Trump Media saw an uptick on Wednesday.
According to a statement from Trump Media, the tokens will be distributed to shareholders via a collaboration with the Crypto.com exchange and are set to operate on the Cronos blockchain.
Devin Nunes, the CEO of Trump Media, described this initiative as a “groundbreaking token distribution” that aims to “benefit Trump Media shareholders and encourage fair and transparent markets.”
Nunes, who previously served as a California Representative, currently acts as the Chair of the Intelligence Advisory Board at the White House, providing insights to Trump on intelligence collection.
The company indicated that shareholders could expect to receive their tokens “in the near future,” hinting at “various incentives” for token holders, including discounts on Trump Media products.
Founded in 2021, Trump Media has recently intensified its efforts within the cryptocurrency sector, while also branching into artificial intelligence and financial services. However, its stock has plummeted by over 60% this year.
Since returning to the White House in January, Trump has advocated for more favorable regulations regarding cryptocurrencies and associated trading platforms. The crypto sector, once considered fringe, has contributed millions to the 2024 presidential election, endorsing candidates, including Trump.
Concerns have been raised regarding potential conflicts of interest stemming from various cryptocurrency ventures launched by Trump, who previously described cryptocurrencies as a scam. These initiatives, such as the TRUMP meme-coin and a token associated with World Liberty Financial—a finance project backed by Trump—have yielded substantial profits.
During the summer, Trump enacted the nation’s first significant crypto legislation, which was broadly viewed as a step towards legitimizing the cryptocurrency industry and integrating it into the financial mainstream.
His administration has also dropped several enforcement actions against cryptocurrency companies and advocated for making it easier for Americans to use retirement funds for investments in non-traditional assets like cryptocurrencies.
Nonetheless, despite a supportive administration, investors have been retreating from cryptocurrencies this year due to concerns over volatility.
Bitcoin, the largest cryptocurrency by market capitalization, is on track to register an annual decline following a significant drop from its peak in October.
Some of Trump’s cryptocurrency investments have also stumbled.
The digital currency TRUMP, which debuted ahead of Trump’s inauguration in January, quickly became one of the more valuable cryptocurrencies.
However, it has since seen a dramatic decline, losing over 90% of its value.