Truth Social Explores Token Launch
The crypto pivot under the social media platform underscored how digital assets are becoming tools of political influence and economic insulation.
Trump Media & Technology Group is exploring the launch of a utility token and digital wallet for its Truth Social platform, primarily to facilitate Truth+ streaming service subscriptions, the company announced yesterday.
The proposed token would initially be used for Truth+ subscriptions before potentially expanding to other products within the "Truth ecosphere," CEO Devin Nunes said.
This ecosphere would include Truth Social and Truth.Fi — the company's recently launched financial services platform.
"As part of a rewards programme, we're exploring the introduction of a utility token within a Truth digital wallet that can initially be used to pay for Truth+ subscription costs, and later be applied to other products and services in the Truth ecosphere," Nunes wrote in a shareholder letter.
The announcement comes on the heels of the company's $250 million investment in Bitcoin and crypto-related securities, alongside plans for "America-First" exchange-traded funds combining cryptocurrencies and equities.
The move raises questions about potential conflicts of interest, with Trump simultaneously serving as US President whilst holding a 59% stake in Trump Media (now placed in a trust) and acting as "Chief Crypto Advocate" for World Liberty Financial.
"The launch of a Trump Media utility token would only heighten concerns about the president's crypto-related ventures potentially conflicting with his duties," noted a Cointelegraph analysis published yesterday.
For the broader crypto industry, Trump's dual role as president and crypto entrepreneur raises the prospect of increased regulatory scrutiny, even as his administration has thus far pursued crypto-friendly policies.