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Trump Media announces digital token for investors
Trump Media & Technology Group, the company behind former U.S. President Donald Trump's Truth Social platform, revealed plans Wednesday to issue a new cryptocurrency token to its shareholders, expanding the Trump family's involvement in digital assets.
Details of the token distribution
The company stated that each shareholder will receive one token for every share owned. The distribution will be facilitated through a partnership with Crypto.com, with the token set to operate on the Cronos blockchain.
Devin Nunes, Trump Media's CEO and a former California congressman who also chairs the White House Intelligence Advisory Board, described the move as a "first-of-its-kind token distribution" designed to "reward Trump Media shareholders and promote fair and transparent markets."
Trump's growing crypto influence
Trump, the largest shareholder in Trump Media, has increasingly supported deregulation of the cryptocurrency sector since returning to the White House in January. His administration recently signed the country's first major national crypto legislation, viewed as a step toward integrating digital assets into mainstream finance.
The administration has also dropped several enforcement actions against crypto businesses and advocated for policies allowing Americans to use retirement savings for crypto investments.
Financial performance and market reaction
Trump Media's shares rose following the token announcement, though the company's stock has declined over 60% this year. The broader crypto market has also faced challenges, with Bitcoin on track for its first annual loss after a sharp drop from October's record highs.
Some of Trump's earlier crypto ventures have struggled. A meme-coin named TRUMP, launched ahead of his inauguration, lost more than 90% of its value after an initial surge.
Criticism and conflicts of interest
Critics have raised concerns about potential conflicts of interest stemming from Trump and his family's crypto ventures. These include the TRUMP meme-coin and a token from World Liberty Financial, a Trump-backed finance project, both of which generated substantial profits.
Trump, who previously called cryptocurrency a "scam," has since become a vocal supporter of the industry, which poured millions into his 2024 presidential campaign.
Future plans for token holders
Trump Media indicated that shareholders would receive the tokens "in the near future" and suggested additional rewards, such as discounts on company products, may follow.
"This initiative reflects our commitment to innovation and shareholder value," the company said in a statement.
