Trump Media and Technology Group, the company behind Truth Social, said it will issue a new cryptocurrency token to its shareholders, extending the Trump family’s involvement in digital assets as the sector faces renewed political and market scrutiny.
Token Distribution And Structure
Trump Media and Technology Group said the digital token will be distributed on a one-for-one basis, with investors receiving one token for each share they hold. The company unveiled the plan on Wednesday and said the distribution will take place in the near future.
The token will be issued through a partnership with Crypto.com and is expected to operate on the Cronos blockchain, according to a company statement. Trump Media said the token could offer shareholders access to rewards, including potential discounts on its products.
Shares of Trump Media rose on Wednesday following the announcement.
Executive And Governance Context
Trump Media Chief Executive Devin Nunes described the move as a first-of-its-kind token distribution aimed at rewarding shareholders and supporting transparent markets. Nunes, a former U.S. Representative from California, also serves as chair of the White House Intelligence Advisory Board, where he provides advice on intelligence matters.
The largest shareholder in Trump Media is Donald Trump, who has publicly supported looser regulation of the cryptocurrency industry since returning to the White House in January.
Expansion Into Crypto And Other Sectors
Founded in 2021, Trump Media has recently expanded beyond social media into cryptocurrency-related initiatives, artificial intelligence, and financial services. Despite that expansion, the company’s shares are down more than 60% so far this year.
The token adds to a growing list of crypto projects linked to Trump and his family, some of which have generated substantial revenue while drawing attention from critics concerned about conflicts of interest.
Regulatory Environment And Political Backdrop
Since taking office, Trump has backed more favorable treatment for cryptocurrencies, trading platforms, and related businesses. The digital asset industry spent heavily during the 2024 election cycle, supporting candidates including Trump.
During the summer, Trump signed the first major national cryptocurrency legislation in the United States, a measure widely viewed as integrating digital assets more formally into the financial system. His administration has also ended several enforcement actions against crypto firms and moved to allow broader use of retirement savings for non-traditional investments such as cryptocurrencies.
Market Conditions And Performance
Despite a more supportive regulatory climate, investor appetite for digital assets has weakened this year, with funds shifting away from assets viewed as volatile. Bitcoin is on track for an annual loss after falling sharply from record highs reached in October.
Some Trump-linked crypto ventures have also declined in value. The TRUMP meme-coin, which launched ahead of Trump’s inauguration in January and briefly ranked among the most valuable digital tokens, has since lost more than 90% of its value. Another project, a token associated with World Liberty Financial, has also drawn attention as part of the family’s expanding crypto activities.
Featured image credits: Heute.at
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