Trump Media & Technology Group (TMTG), the parent company of Truth Social, announced the launch of "Truth API," a paid, licensed data service designed to provide financial institutions and high-frequency trading firms with the fastest possible access to posts from the 10 most influential accounts on its platform. This service, set to launch on August 1, aims to capitalize on the significant market impact of President Trump's social media posts. While TMTG did not publicly disclose pricing, sources familiar with the discussions indicate that the company has pitched fees as high as $100,000 per month for this premium access, with a discounted rate of $60,000 per month for firms committing to a three-year plan.
This move by TMTG is intended to create a new, meaningful revenue stream, as acknowledged by interim CEO Kevin McGurn. The company's stock, which debuted on Nasdaq in March 2024 at $57.99 per share, has since fallen to around $9.66, reflecting a roughly 27% loss this year and giving the company a market value of about $2.7 billion. The President's trust holds approximately 41% of TMTG's outstanding stock, meaning he stands to directly benefit from the API's success.
The initiative has drawn significant criticism from Democratic lawmakers and watchdog groups, who question the ethical implications of the President and his family potentially profiting from market-moving information disseminated through a paid service. Senator Elizabeth Warren called it an "egregious scheme," while Senator Ron Wyden stated it would financially benefit the Trump family and "make Wall Street traders rich." Critics highlight past instances where Trump's Truth Social posts, such as those concerning tariffs or the US-Iran war, have caused immediate and substantial shifts in stock prices, oil prices, and other financial instruments.
High-frequency trading firms, the primary target for Truth API, rely on speed advantages of mere milliseconds to execute rapid trades and generate hundreds of thousands of dollars in profits. The service will provide round-the-clock coverage and an archive of posts dating back to 2022. Although TMTG has stated that some institutional customers have already signed up, their identities have not been disclosed, and the White House has referred questions on the matter back to TMTG.
