Truth Social, owned by Donald Trump, plans to monetize the former president’s social media posts. Starting Saturday, Wall Street traders can pay for early access to Trump’s announcements. This decision could lead to significant profits for Trump’s company and raises questions about insider trading and private gain from public office.
Traditionally, social media and news services sell high-speed access. Unlike others, Truth Social not only shares news but creates it. Trump’s posts shake markets by announcing policy shifts. Irene Aldridge, director of Able Alpha Trading, criticized the move, comparing it to illegal insider trading.
“If this were a CEO of a publicly traded company, this would be grounds for jail,” – Irene Aldridge
Truth Social argues critics lack capitalist understanding. When questioned about the legality, Trump’s press office referred queries to Trump Media & Technology, which criticized Democrats for misunderstanding free markets and public versus non-public information.
Trump’s posts can drive market changes. High-frequency traders benefit from such volatility, trading at millisecond speeds to capitalize on price shifts. Recent posts included threats to raise tariffs on Canada, alter a nuclear deal with Saudi Arabia, and escalate conflict with Iran, impacting related markets and currencies.
Joe Saluzzi, co-founder of Themis Trading, predicts demand for the service among high-frequency traders due to its market-moving potential.
“For big players, it’s something they need,” – Joe Saluzzi
Truth API, the service, arrives as firms invest heavily in faster data channels and AI tools to swiftly process price-impacting news. Trump’s penchant for unexpected announcements benefits such firms. Despite promises of equal access, critics argue that high-frequency traders hold an edge.
Besides policy updates, Trump’s posts now often praise public companies, causing their stocks to surge temporarily. Recently, his praise of Palantir Technologies and Intel led to quick stock price increases.
Major trading firms like Citadel Securities have not commented on subscribing to the service, priced at $100,000 monthly. Such clients could double Trump Media’s revenue, reported at $3.7 million last year.
Truth Social faces financial strain, with stocks falling 75% since Trump took office, despite increasing site visits through Trump’s frequent posts. The White House often echoes Trump’s Truth Social announcements to the press.
A potential Democratic-controlled Congress could threaten the service with investigations, as Senator Elizabeth Warren vowed accountability for what she labels ‘blatant corruption.’ Facing losses, Trump might increase policy announcements on Truth Social.
“Trump knows how to sell products,” – Craig Holman
Experts forecast more announcements on Truth Social amid financial challenges, cementing its role in policy distribution.
AP journalists Will Weissert and Josh Boak contributed to this report.
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