Trump Media terminates crypto deal with Crypto.com
What's the story
Trump Media & Technology Group Corp. has terminated its partnership with cryptocurrency exchange Crypto.com. The decision comes just a year after the two companies had announced plans to form a digital treasury firm for purchasing billions of dollars worth of Crypto.com's digital token, known as CRO. The termination also includes plans to offer prediction market contracts on Truth Social, President Donald Trump's social media platform.
Market conditions
Moving forward under current market conditions doesn't make sense
The decision to cancel the deal and withdraw from certain ETF services was confirmed by Kris Marszalek, CEO of Crypto.com.
He said, "After analyzing these proposed ETFs and DAT from every angle, we've reached the same conclusion: moving forward under current market conditions doesn't make sense."
Marszalek added that they will explore other ETF opportunities and find a better way to allocate resources committed to the DAT for driving revenue and growing ecosystem value.
Merger plans
Trump Media to merge with TAE Technologies Inc.
Despite the recent setbacks in its crypto ventures, Trump Media has announced plans to merge with TAE Technologies Inc., a private fusion developer.
The all-stock deal, which is worth over $6 billion, will see shareholders of both companies owning about 50% of the combined business after completion.
However, the companies said in June that they were no longer pursuing plans to spin off assets including Truth Social as part of this merger.