The firm behind US President Donald Trump's Truth Social platform said it would release a new cryptocurrency to its shareholders, marking the Trump family's latest foray into digital assets.
The digital token from Trump Media and Technology Group will complement the Trumps' crypto projects, which have brought in hundreds of millions of dollars and raised questions about conflicts of interest.
Trump Media introduced the new token on Wednesday and said investors will receive one for every share they own. Trump, who is himself Trump Media's largest shareholder, has supported looser regulation of the crypto sector.
Trump Media shares rose on Wednesday following the company's announcement.
The token will be distributed to shareholders through a partnership with the Crypto.com exchange, Trump Media said in a statement. It is ready to work on the Cronos blockchain.
Devin Nunes, chief executive of Trump Media, called it a “first-of-its-kind token distribution” that will “reward Trump Media shareholders and promote fair and transparent markets.”
Nunes, a former member of the House of Representatives from California, also serves as the White House chairman of the Intelligence Advisory Board, advising Trump on intelligence gathering.
The company said that shareholders will receive the tokens “in the near future.” He hinted at “various rewards” for token holders, such as discounts on Trump Media products.
Trump Media, founded in 2021, has recently expanded its presence in the crypto industry, as well as in artificial intelligence and financial services. But its shares are down more than 60% this year.
Since returning to the White House in January, Trump has pushed for more favorable regulation of cryptocurrencies, as well as trading platforms and other parts of the industry. The once fringe industry has poured millions into the 2024 presidential election, supporting candidates like Trump.
Critics have raised concerns about possible conflicts of interest arising from the various crypto projects launched by Trump, who once called cryptocurrency a scam, and members of his family. These ventures, such as the meme coin TRUMP and the token of World Liberty Financial, a financial project supported by Trump, have generated significant profits.
Over the summer, Trump signed the country's first major agreement. national cryptographic legislationwhich was widely seen as a step towards legitimizing the sector and integrating cryptocurrency into the financial mainstream.
His administration also closed several enforcement cases against the crypto business and seeks to make it easier for Americans use pension savings for investment in non-traditional assets such as cryptocurrencies.
However, despite the White House's favorable view of cryptocurrencies, investors have shunned cryptocurrencies this year as they move away from assets seen as volatile.
Bitcoin, the world's largest cryptocurrency, is poised to post a full-year loss after falling sharply from record highs in October.
Some of Trump's cryptocurrency bets have also failed.
A digital coin called TRUMP, released ahead of Trump's inauguration in January, has quickly become one of the most valuable cryptocurrencies.
But since then, the meme coin has lost more than 90% of its value.
