Trump Media, owned by Donald Trump, plans to expand into cryptocurrencies with Truth.Fi, investing up to $250 million into digital assets. Shares surged 15% post-announcement. Amid criticism regarding potential conflicts of interest, CEO Devin Nunes emphasized creating investment options to safeguard against big tech threats.
Trump Media, the social media venture associated with former President Donald Trump, has announced an ambitious expansion into the world of cryptocurrencies. This move introduces a new financial technology brand, Truth.Fi, and aims to draw the company deeper into the evolving digital currency landscape. Following the announcement, shares of Trump Media & Technology Group surged by 15% in pre-market trading.
In a striking investment venture, Trump Media intends to allocate up to $250 million into investment accounts focused on Bitcoin and similar cryptocurrencies. The funds will be overseen by Charles Schwab, raising eyebrows regarding potential conflicts of interest given Trump’s dual roles in business and politics. Critics have been vocal, labeling the cryptocurrency endeavors as a troubling conflict given Trump’s pledge to make the U.S. a global leader in the crypto sector.
Despite facing challenges in creating a social network that can compete with established giants like Facebook and Instagram, Trump Media has leveraged its status as a “meme stock” to raise substantial capital since its market debut last year. Under its new Truth.Fi brand, the company plans to introduce several investment options throughout this year.
Devin Nunes, CEO of Trump Media, declared, “Truth.Fi is a natural expansion of the Truth Social movement.” He emphasized that the evolution from a free-speech platform to now including investment products is part of their strategic growth. Nunes further stated, “Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking, and privacy violations committed by big tech and woke corporations.”
Trump Media’s venture into cryptocurrencies through its brand Truth.Fi marks a significant step forward, blending financial services with its existing media presence. The move has elicited mixed reactions, particularly concerning ethics amid Trump’s political background. As the company aims to create an investment ecosystem that champions the values of its supporters, it faces the challenge of building credibility while navigating the contentious waters of social media and finance.
Original Source: www.theguardian.com
