In order to give its shareholders digital tokens, the Trump Media and Technology Group in the United States has partnered with a cryptocurrency exchange.
As of 11am US East Coast time (16:00 GMT), the company’s shares were up 5% on Wednesday, matching the announcement.
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Donald Trump, the president of the United States, who has been a vocal supporter of cryptocurrency during his second term, owns the majority of Trump Media’s shares.
The company stated in a press release that it would collaborate with Crypto.com in Singapore to offer shareholders one digital token for every entire share they own.
The plan was unachievable, but Trump Media stated that the tokens would be made available “in the near future.”
Additionally, it stated that “various awards” would be “made available to token holders annually throughout the year,” with benefits and discounts relating to Trump’s affiliated streaming platform Truth+ and his social media platform Truth Social.
In the press release, Trump Media CEO Devin Nunes stated that “we look forward to utilizing Crypto.com’s blockchain technology and improving regulatory clarity to implement this first-of-its-kind token distribution.”
establishing a “crypto capital”
Trump Media’s first partnership with Crypto.com is not his first foray into the cryptocurrency space, and neither is his first foray into the cryptocurrency space.
Trump has, in fact, referred to himself as a “crypto president” during his second term.
His recent goals have included ending investigations and reversing regulations that he believes have hampered cryptocurrency development.
Trump has repeatedly pledged to make the United States the “crypto capital of the world,” in line with other right-wing leaders like Nayib Bukele and Javier Milei in El Salvador.
One of the businesses that have benefited from that push is Crypto.com.
After the Securities and Exchange Commission (SEC) allegedly gave Crypto.com a “Wells notice,” which indicated the likelihood of upcoming regulatory action, it was announced in October 2024 that it had filed a lawsuit against the federal government.
However, after Trump’s second term officially began in January, the government’s investigations into Crypto.com and other digital currency platforms were quickly dropped.
Trump, a Republican, accused his predecessor, Democrat Joe Biden, of unfairly focusing on the crypto industry and called the investigations and prosecutions an attack on innovation.
Trump addressed a roundtable of cryptocurrency leaders in March, who he praised as “high-IQ people,” and stated that “my administration is also working to end the federal bureaucracy’s war on crypto, which was really going on pretty wildly during Biden.
The Trump administration also announced a “strategic reserve” at the US Treasury, which included a stockpile of digital assets as well as a stockpile of Bitcoin.
The administration has also promoted the use of cryptocurrency in retirement accounts in addition to other initiatives to make it more popular.
Trump argued that such actions would result in a burdensome patchwork of regulations by issuing an executive order this month to discourage states from enforcing their own restrictions on cryptocurrency.
However, critics warn that investments could be volatile due to the lack of regulation surrounding cryptocurrency and the industry’s reliance on loans. Consumers could become vulnerable to cratering losses as a result.
The digital currency sector, however, has supported Trump by supporting his Republican opponent, with millions of dollars going to his 2025 inauguration fund.
One of the companies that donated to the inauguration was Crypto.com, as well as super PACs (political action committees) connected to the president.
Separately, Trump Media and Crypto.com have developed a more enduring relationship.
For instance, the two businesses announced in August that Trump Media would act as the company’s Treasury for Cronos, one of Crypto.com’s assets.
Then, in October, Trump Media and Crypto.com announced a partnership to develop a Truth Predict market prediction platform.
Because they let users place money on the outcome of global events, including political elections, they are sometimes called “betting markets.”
Trump still stands to gain from any profits the business makes, even though he has invested a large portion of his stock in a revocable trust run by his son Eric.
Business leaders have been accused of trying to influence the president by backing his family’s financial interests and corporate ventures by critics.
Trump Media has struggled to find its footing since its 2021 launch.
With a comparatively small 6 million reportedly monthly users, its flagship product, Truth Social, continues to be in line with its competitors.
Source: Aljazeera
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