The organization that manages Truth Social, Donald Trump’s platform, revealed that the fresh digital asset will be allocated to investors in collaboration with the digital currency exchange Crypto.com, according to a statement issued on Wednesday. The digital token is anticipated to function on the Cronos network, a blockchain platform backed by Crypto.com.
The novel digital coin constitutes the most recent addition to several digital currency initiatives associated with Trump. Notably, the World Liberty Financial decentralized finance project, supported by the Trump family, operates the WLFI token and the USD1 stablecoin. Earlier in the year, the former president also introduced his own TRUMP memecoin, while his spouse Melania promoted a comparable digital coin, MELANIA.
Following the attainment of peak values on January 19, the TRUMP token has depreciated by 93%, and the MELANIA coin has forfeited 99% of its valuation from its historical apex on January 20.
As stated by the company, each Trump Media stakeholder will be granted one token for each share they possess. As per information gathered by Bloomberg, Donald Trump himself stands as Trump Media’s principal shareholder, possessing 41% of the enterprise.
Trump’s return to the White House in January has been instrumental in fostering a more advantageous regulatory landscape for digital currency enterprises. During the summer months, recent legislation was enacted to govern specific sections of the sector, and a series of legal actions against crypto entities were either suspended or concluded by regulatory bodies.
“We anticipate utilizing Crypto.com’s blockchain innovation and enhanced regulatory clarity to enact this distinctive token distribution strategy, compensate Trump Media shareholders, and encourage equitable and transparent markets,” commented Devin Nunes, CEO of Trump Media.
The new digital token will present an alternate avenue for the media corporation, which earlier this year declared the introduction of an extensive array of new ventures, encompassing initiatives in the domain of nuclear fusion, the accumulation of other digital currencies, the provision of monetary products, and the establishment of markets for wagering on sports. The firm further indicated that token proprietors may be eligible for supplementary benefits, such as rewards or reductions on Trump Media offerings. Concurrently, the digital tokens will not embody a stake of ownership in DJT shares and may not be transferable or convertible to cash.
The company's shares experienced a surge of approximately 3.3% in premarket trading on Wednesday.
Source: Bloomberg