The firm behind US President Donald Trump’s Truth Social platform said it will issue a new cryptocurrency to its shareholders, marking the Trump family’s latest foray into digital assets.
The digital token from Trump Media and Technology Group will add to the Trumps’ crypto ventures, which have generated hundreds of millions of dollars and have raised questions about conflicts of interest.
Trump Media unveiled the new token on Wednesday and said investors will receive one for each share they hold. Trump, who is himself the largest Trump Media shareholder, has supported looser regulation of the crypto sector.
Trump Media shares rose on Wednesday following the firm’s announcement.
The token will be distributed to shareholders through a partnership with the Crypto.com exchange, Trump Media said in a statement. It is poised to operate on the Cronos blockchain.
Devin Nunes, Trump Media’s chief executive, called it a “first-of-its kind token distribution” that will “reward Trump Media shareholders, and promote fair and transparent markets”.
Nunes, a former Representative from California, also serves at the White House as the Chair of the Intelligence Advisory Board, providing advice to Trump about intelligence collection.
The company said that shareholders will receive the tokens “in the near future”. It hinted at “various rewards” for token holders, such as discounts on Trump Media products.
Trump Media, which was founded in 2021, has recently broadened its push into the crypto industry, while also expanding into artificial intelligence and financial services. But its shares have fallen more than 60% this year.
Since returning to the White House in January, Trump has pushed for more favorable regulation of cryptocurrencies, as well as trading platforms and other parts of the industry. The once-fringe industry poured millions into the 2024 presidential election, backing candidates including Trump.
Critics have expressed concerns about possible conflicts of interest arising from the various crypto ventures Trump, who once called crypto a scam, and his family members have launched. Those ventures – such as the TRUMP meme-coin and a token from World Liberty Financial, a Trump-backed finance project – have generated significant profits.
In the summer, Trump signed the country’s first major national crypto legislation, which was widely seen as a step toward legitimising the sector and integrating crypto into the financial mainstream.
His administration has also dropped several enforcement cases against crypto businesses and has pushed to make it easier for Americans to use retirement savings to invest in non-traditional assets like cryptocurrencies.
Still, despite a crypto-friendly White House, investors have pulled back from crypto this year as they move away from assets seen as volatile.
Bitcoin, the world’s largest cryptocurrency, is poised to post an annual loss, after a sharp decline from its record highs in October.
Some of Trump’s crypto bets have also faltered.
The digital coin called TRUMP launched ahead of Trump’s inauguration in January quickly became one of the most valuable crypto coins.
But since then the meme-coin has lost more than 90% of its value.
By BBC News
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
