Trump Media has launched a service to deliver Truth Social posts to traders in advance, charging up to $1 per month.

Trump Media revealed that more than 10 clients have signed up for the Truth API, a service that delivers crucial posts on Truth Social to traders before the market opens, charging between $60,000 and $100,000 per month. This comes amid ethical questions after the company reported a $238 million loss in the second quarter.

On August 11, 2569 at 14.00:XNUMX a.m., BBC News reported that Trump Media revealed that more than 10 clients have signed up for a new service that gives investors faster access to key posts on the Truth Social platform than regular users. In particular, messages from influential accounts could affect financial market movements.

The service, called "Truth API," launched in early August and is aimed at Wall Street companies that need to quickly obtain information from Truth Social to use in asset trading.

Kevin McGurn, acting chief executive officer of Trump Media. It was revealed during the earnings report that the majority of the initial clientele were companies engaged in high-frequency trading (HFT), which paid services ranging from approximately $60,000 to $100,000 per month.

The service garnered attention because President Donald Trump used Truth Social as one of his primary channels for announcing policies and expressing opinions on various issues, often causing rapid movements in stock prices and highly traded assets.

Trump Media views the Truth API as a potential new revenue stream for the company, with the potential to develop into a “significant” and “sustainable” long-term revenue stream, alongside its media, advertising, and digital asset businesses.

The company is considering expanding its services to technology companies, news organizations, and the betting market.

However, the distribution of Truth Social posts in high-speed data format to institutional investors has raised legal and ethical questions, as the Trump family remains the majority shareholder of the company, and the president's public statements can manipulate markets and potentially generate revenue for the family's holdings.

The launch of the Truth API comes amid financial pressure after Trump Media and Technology Group reported a loss of $238 million in the April-June period, more than tenfold higher than the same period last year.

While revenue stood at just $1.7 million, an 89% increase compared to the previous year, the company stated that the overall loss was partly due to the decline in the value of cryptocurrency assets.

As of the end of the second quarter, Trump Media had total assets of approximately $2 billion. Of this amount, approximately $1.9 billion was financial assets, consisting of cash, short-term investments, and digital assets.

In the past, Trump Media has expanded beyond social media to include cryptocurrency holdings and clean energy investments, although the company has yet to turn a profit since its inception.

Markus Thielen, an analyst from 10x Research. He commented to the BBC that Trump Media currently resembles a “crypto-holding company with a media business wrapped around it,” and that the majority of the company's losses stem from this strategy.

Although the company has attempted to diversify into other areas, including social media, these businesses have not yet been able to generate significant revenue.

Trump Media stated that it would refocus on its social media mission, with the Truth API positioned as a new revenue stream from valuable data for the financial markets.

Earlier this month, Trump Media also canceled its planned partnership with Crypto.com, which was originally aimed at adding a Prediction Market feature to the Truth Social platform.

refer : bbc.com

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