Trump Media to launch new cryptocurrency for shareholders
What's the story
Trump Media and Technology Group Corp, the company behind US President Donald Trump's Truth Social platform, has announced plans to launch a new cryptocurrency. The digital token will be distributed directly to its shareholders in partnership with crypto exchange Crypto.com. Each shareholder will receive one token for every share they own. The move is part of a growing list of cryptocurrency ventures associated with Trump.
Crypto connections
Trump's involvement in cryptocurrency ventures
Along with the new digital token, Trump has also been associated with World Liberty Financial, a decentralized finance project that runs the WLFI token and $1 stablecoin. Earlier this year, he launched his own TRUMP memecoin and a similar coin endorsed by his wife Melania. Notably, Trump is the largest shareholder of Trump Media with a 41% stake in the company.
Regulatory environment
Cryptocurrency initiative amid favorable regulatory climate
The announcement of the new cryptocurrency comes as a result of a more favorable regulatory climate for the crypto industry. This is due to Trump's return to the White House in January and new legislation passed over the summer to regulate parts of the sector. Several enforcement actions against crypto companies have also been paused or dropped, Bloomberg reported.
CEO's remarks
Trump Media CEO's statement on new cryptocurrency
Devin Nunes, the CEO of Trump Media, expressed excitement about the new cryptocurrency. He said, "We look forward to utilizing Crypto.com's blockchain technology and improving regulatory clarity to implement this first-of-its-kind token distribution." The tokens will not represent ownership in Trump Media shares and may not be transferable or exchangeable for cash. However, token holders could receive additional perks related to Trump Media products.