Trump Media Expands Into Crypto With Utility Token, Digital Wallet

Trump Media & Technology Group (TMTG), the company behind Truth Social, has announced plans to develop a utility token and a digital wallet for its Truth+ subscriptions. This initiative is part of a broader strategy to expand into the crypto space, aiming to create a parallel economy for its conservative user base. The digital wallet will initially facilitate payments for Truth+, the company’s streaming service, and eventually extend to other services within the “Truth ecosphere,” including Truth Social and Truth.Fi, its fintech division.

The utility token is designed to be part of a rewards system to boost activity within the TMTG ecosystem. While the company has not confirmed whether the token will be blockchain-based, both utility tokens and digital wallets are common tools in the crypto industry. This move supports TMTG’s goal of providing alternative financial tools to its users, aligning with its “patriotic” values.

In addition to the utility token, TMTG is exploring further financial ventures. The company is collaborating with Crypto.com and Yorkville America Digital to market exchange-traded funds (ETFs) that combine traditional equities and cryptocurrency. These ETFs will be available through Truth.Fi and are expected to offer a “Made in America” branding. TMTG had previously announced plans to invest up to $250 million of its cash reserves into Bitcoin and other crypto-related assets, with oversight from Charles Schwab. This investment strategy is intended to empower Trump supporters with access to alternative financial tools.

The market reaction to the proposed utility token has been mixed. Following the announcement, the official meme coin of Trump, TRUMP, on the Solana blockchain, experienced an 11% drop in value within 24 hours. This decline is part of a broader trend from its all-time high in January. Similarly, a meme coin associated with Melania Trump also saw a significant drop in value during the same period. These price drops have raised questions about the long-term viability of Trump-branded crypto assets, despite recent efforts to boost demand.

TMTG’s foray into the crypto space has also raised political and moral questions. Despite placing a 59% stake of the company in a trust, Trump continues to face accusations of conflicts of interest. Critics are concerned that his political influence could sway regulatory decisions in favor of companies connected to him or his family members. This scrutiny has intensified as the Trump administration has taken steps to encourage pro-crypto regulation, including tracking messages, weakening enforcement units, and proposing stablecoin laws.

The utility token scheme is part of a growing Trump-branded crypto empire. In addition to Truth+, Truth Social, and Truth.Fi, TMTG’s product lines now include multiple NFT collections, the TRUMP and MELANIA memecoins, World Liberty Financial, a DeFi project, a Trump-branded real estate video game, a proposal for a Bitcoin mining business, and a forthcoming stablecoin. While the crypto community and political watchdogs remain skeptical, TMTG’s base seems to support these initiatives. The company, which went public in March 2024, has seen its valuation decline from $8 billion to approximately $5.5 billion, reflecting the market’s cautious response to its crypto ambitions.