The media company of former President Donald Trump is making waves by announcing plans to delve deeper into the world of cryptocurrency. Trump Media & Technology Group - the entity owning the social media platform Truth Social - stated that it is considering issuing a utility token along with its own digital wallet, marking the beginning of an ambitious crypto strategy.
From Truth Social to 'Truth Token': Trump's crypto ambition
In a letter to shareholders on Tuesday, CEO and Chairman Devin Nunes of Trump Media revealed that the company is 'exploring the introduction of a utility token' as part of a rewards program for Truth Social users.
According to preliminary plans, this token will be used to pay for Truth+, the company's video streaming platform, and then expand to other products within the Truth ecosystem, including:
Truth Social: a social network positioning itself as 'giving the voice back to Americans.'
Truth.Fi: Trump Media's new fintech brand, expected to provide financial products themed 'America First', including ETFs combining traditional stocks and cryptocurrencies.
Notably, Trump Media also stated that the company plans to invest alongside shareholders in these financial products, with a commitment of up to $250 million in cash for investment in Bitcoin and other digital assets.
There is TRUMP, is another new token coming soon?
If the token project is officially launched, Trump Media will become the next name on the list of tokens related to the former U.S. president. Previously:
TRUMP, an official meme coin of Trump on the Solana blockchain, was launched in January.
Token of First Lady Melania Trump, also deployed on Solana.
However, the prices of these tokens plummeted sharply right after news of the new token:
TRUMP fell 3% in 1 hour after the shareholder letter was published, and dropped 11% in 24 hours, continuing its downward trend from a peak of over $73 in January.
Melania Trump's token also lost 4.2% in the hour and 9.5% in the day, currently only at $0.40 - down 97% from its peak.
The addition of a new token from Trump Media has raised market skepticism about the exclusivity and sustainable value of tokens associated with the #TRUMP brand.
Trump Media's stock price remains flat, investors await an important meeting
While the crypto market reacts negatively, Trump Media's shares did not record fluctuations in after-hours trading. However, at the close of Tuesday, the stock fell 3.29% to $24.98, marking a decline of over 26% year-to-date.
Investors are awaiting specific information to be revealed at the annual shareholder meeting on Wednesday, which may disclose more details about this ambitious crypto strategy.
Contact with the crypto market and Binance users
The formal consideration by #TrumpMedia to deploy a token and digital wallet could open a wave of politically branded crypto products, attracting both traditional investors and the Web3 community. However, the risk of dilution of Trump-related tokens also increases, especially if the projects lack a strong practical application foundation.
For Binance users, this trend is an important warning about the risks of investing in meme coins or iconic tokens, rather than focusing on long-term utility value. If 'Trump Token' is indeed launched, its chances of being listed on major exchanges like Binance will largely depend on transparency, product features, and the actual user community - aspects that are still too early to evaluate.
Risk warning:
The cryptocurrency market always carries high risks, especially with tokens that have political or meme elements. Investments should be made cautiously, with understanding and in line with personal risk appetite. This article is not investment advice.