Trump Media says more than 10 Wall Street clients have subscribed to paid early-access service
Trump Media & Technology Group, founded by current U.S. President Donald Trump in 2021, said more than 10 clients have signed up to use the Truth API, an application programming interface for the Truth Social platform. The service officially launched earlier this month. It allows Wall Street traders to receive posts from the platform’s top users, including Trump, several milliseconds before the general public. Customers are charged $60,000 to $100,000 per month. Interim CEO Kevin McGann said Monday at the company’s earnings presentation that most Truth API customers are high-frequency trading firms. The company is also in talks to sell the product to hyperscale cloud providers, major news organizations and large-language-model developers, and plans to expand the tool to retail traders. McGann said the product remains in its “early stages,” but the company is “very encouraged” by its initial progress. The company reported a $238 million loss for the second quarter, more than 10 times its loss in the same period last year. The larger loss resulted from its continued expansion beyond its core media business, including into cryptocurrency. The Truth API is part of the company’s turnaround plan to refocus on its social-media business. The product highlights Trump’s influence through the social platform, where he has used posts to announce major policy changes and potentially move markets. Insider-trading-related controversy The product, combined with Trump’s continued ownership of company shares, has raised several ethical concerns. Trump owns about 41% of Trump Media & Technology Group, allowing him to benefit from additional revenue generated by paying Truth API customers. The service currently has only 10 customers, but can generate as much as $1 million per month, or up to $12 million annually. Industry experts said the new feature effectively allows Trump to earn money from his own official statements. Last month, New York Democratic Rep. Richie Torres petitioned the U.S. Securities and Exchange Commission to investigate the Truth API. He said that a company majority-owned by a sitting president was providing traders with market-moving policy announcements faster than other users, clearly violating the principle that the platform should license only conventional data. Torres also said that even a limited increase in access to policy information could undermine fair competition in the market.
The service officially launched earlier this month. It allows Wall Street traders to receive posts from the platform’s top users, including Trump, several milliseconds before the general public. Customers are charged $60,000 to $100,000 per month.
Interim CEO Kevin McGann said Monday at the company’s earnings presentation that most Truth API customers are high-frequency trading firms. The company is also in talks to sell the product to hyperscale cloud providers, major news organizations and large-language-model developers, and plans to expand the tool to retail traders.
McGann said the product remains in its “early stages,” but the company is “very encouraged” by its initial progress.
The company reported a $238 million loss for the second quarter, more than 10 times its loss in the same period last year. The larger loss resulted from its continued expansion beyond its core media business, including into cryptocurrency. The Truth API is part of the company’s turnaround plan to refocus on its social-media business.
The product highlights Trump’s influence through the social platform, where he has used posts to announce major policy changes and potentially move markets.
Insider-trading-related controversy
The product, combined with Trump’s continued ownership of company shares, has raised several ethical concerns. Trump owns about 41% of Trump Media & Technology Group, allowing him to benefit from additional revenue generated by paying Truth API customers.
The service currently has only 10 customers, but can generate as much as $1 million per month, or up to $12 million annually. Industry experts said the new feature effectively allows Trump to earn money from his own official statements.
Last month, New York Democratic Rep. Richie Torres petitioned the U.S. Securities and Exchange Commission to investigate the Truth API. He said that a company majority-owned by a sitting president was providing traders with market-moving policy announcements faster than other users, clearly violating the principle that the platform should license only conventional data.
Torres also said that even a limited increase in access to policy information could undermine fair competition in the market.