Trump Media to Distribute New Cryptocurrency to Shareholders as President Pushes Deregulation
Trump Media and Technology Group, the parent company of President Donald Trump’s Truth Social platform, has announced plans to issue a new digital currency to its equity holders. The move marks the latest expansion into digital assets by the Trump family, a trend that has generated significant revenue while raising questions regarding potential conflicts of interest.
Token Distribution Details
On Wednesday, the company unveiled the initiative, confirming that investors will receive one digital token for every share of Trump Media stock they hold. The distribution will be facilitated through a partnership with the exchange Crypto.com and will operate on the Cronos blockchain.
Devin Nunes, the company’s chief executive, described the move as a “first-of-its-kind token distribution” intended to reward shareholders and promote market transparency. Nunes, a former U.S. Representative, currently serves a dual role: leading the media company while simultaneously acting as the Chair of the Intelligence Advisory Board at the White House.
Following the announcement, shares in Trump Media rallied, although the stock remains down more than 60% year-to-date. The firm, established in 2021, has recently signaled intentions to broaden its operations into artificial intelligence and financial services.
Policy Shifts and Market Volatility
President Trump, who remains the majority shareholder of Trump Media, has advocated for a lighter regulatory approach to the cryptocurrency sector since returning to office in January.
Over the summer, the President signed major national crypto legislation viewed as a step toward legitimising the industry. His administration has subsequently dropped several enforcement cases against crypto firms and advocated for allowing Americans to utilize retirement savings for non-traditional digital assets.
These policy shifts occur against a backdrop of broader market volatility. Despite the administration’s supportive stance, investors have retreated from the sector this year. Bitcoin is on track to post an annual loss following a sharp decline from record highs set in October.
Conflict of Interest Concerns
The President’s direct involvement in the industry has drawn criticism regarding conflicts of interest. Trump, who previously labelled cryptocurrency a “scam,” has since launched various ventures alongside family members, including the World Liberty Financial project.+1
While these ventures have generated hundreds of millions of dollars, not all have sustained their value. The ‘TRUMP’ meme-coin, which launched ahead of the January inauguration and briefly soared in value, has since lost more than 90% of its market capitalisation.