President Donald Trump is known for influencing global markets with his words. Now, he’s putting a price on it. Starting Saturday, Trump’s Truth Social will offer paid access to advance previews of his social media posts. This new venture opens opportunities for profit and raises questions around insider trading and the use of public office for personal gain.
Trump’s Posts as Market Movers
Truth Social will sell early access to President Trump’s posts, a service similar to feeds offered by other social media companies. However, Truth Social not only reports the news but actively creates it. Trump’s posts often shake markets, with topics ranging from military actions to bank policies and tariffs.
If this was the CEO of a public company, this would be jail time, said Irene Aldridge, head of Able Alpha Trading. Her firm does not plan to purchase the service.
Insider Information and Market Impact
Trump’s company has defended the new service against critics by emphasizing its commitment to free markets. However, Trump’s frequent online postings have been known to cause sudden changes in financial markets, attracting traders who move at high frequency.
Recent examples include Trump’s threats involving tariffs on Canada and changes in the Middle East. These posts have provided lucrative opportunities for traders to bet on currency and commodity fluctuations.
Truth API and Trading Dynamics
Dubbed Truth API, the new service will cater to high-frequency trading firms that prioritize quick data access. As companies invest more in technology to gain market advantage, Trump’s Headlines could prove valuable with the help of artificial intelligence to quickly interpret posts for rapid trading opportunities.
Joe Saluzzi of Themis Trading estimates around 100 high-frequency firms might invest in the service, as Trump’s unpredictable announcements create numerous opportunities for traders to profit quickly.
Concerns About Fairness
Though Truth Social asserts that posts will be released to traders and the public simultaneously, critics argue that those with faster access will have the upper hand.
Somebody who purchases the information can act quicker than the average investor, remarked Saluzzi. The loser is always the retail investor.
Trump’s Influence on Stocks
Beyond policy announcements, Trump also uses Truth Social to praise certain companies, triggering stock surges. For instance, after he praised Palantir Technologies, the stock jumped significantly. Similarly, Trump’s compliments on Intel led to a sharp rise in its stock’s after-hours trading.
Business Ramifications for Trump Media
While it’s unclear which firms will subscribe, the service presents potential revenue streams. If a few businesses sign up at $100,000 monthly, Trump Media could significantly boost its revenue, important as the company faces financial losses.
Trump Media, the parent of Truth Social, has seen a 75% drop in its stock since his presidency began. Despite Trump’s frequent posts doubling as traffic drivers, the company continues to report substantial losses.
With Democrats, like Senator Elizabeth Warren, warning of possible future investigations into such business practices, the company remains under scrutiny.
The possibility of mounting losses might drive Trump to utilize the platform increasingly for significant announcements, according to Craig Holman of Public Citizen.
AP reporters Will Weissert and Josh Boak also contributed from Washington.
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