The insufferable saga of Donald Trump’s Truth Social website, and his desperate attempts to remain relevant online since he was booted from Twitter, is continuing to descend ever deeper into an abyss of his own making. And this downward spiraling is accelerating despite his relentless contributions of posts that are primarily incoherent and emotional outbursts of hostility, ignorance, and self-exaltation.
This week the Securities and Exchange Commission inexplicably approved the merger between Truth Social’s parent company, Trump Media and Technology Group (TMTG), and Digital World Acquisition Corp (DWAC), the shell company that Trump hopes to use to get a stock market listing. That news contributed to DWAC’s stock price tripling since the beginning of the year ($16.00- $48.00). Or maybe it was because the Biden-Harris campaign created a Truth Social account and began posting a few weeks ago.
However, no one but confirmed Trump Cult devotees should be jumping into this stock if they care about preserving their money. A quick look at the company’s prospectus should frighten off any astute investors. Some of the risks disclosed in the prospectus were reported by MarketWatch
“Truth Social, his would-be Twitter rival, is a high-risk, speculative operation with few hard numbers behind it. It’s already the subject of subpoenas, from regulators and a grand jury, even though it’s barely off the ground. Oh, and Trump is not required to use the social-media site much — if at all — to communicate with the public, notably if voters were to return him to the White House. You buy the stock at your own peril.”
“Digital World has been in trouble with the Securities and Exchange Commission, and recently agreed to pay $18 million to settle fraud charges relating to this potential merger.”
“A number of companies that were associated with President Trump have filed for bankruptcy…There can be no assurances that TMTG will not also fail.”
The prospectus also discloses the six bankruptcies among Trump’s hotels and casinos, and other business failures, such as his airline, vodka, steaks, mortgage, and travel agency. Also mentioned was his fraudulent university that was ordered to pay $25 million in compensatory damages. The article didn’t mention his bogus charity that was also fined and shuttered.
Furthermore, the prospectus included a section enumerating Trump’s numerous pending criminal cases. The 91 felony charges included everything from financial fraud, to inciting a violent insurrection, to threatening election officials, to stealing (and perhaps disseminating) classified documents. And let’s not forget his being found civilly liable for rape and ordered to pay $354 million for falsifying his financial statements.
MarketWatch noted that TMTG reported a measly 8.9 million users. But that’s okay because it “believes that adhering to traditional key performance indicators, such as signups, average revenue per user, ad impressions and pricing, or active user accounts” is a distraction.
Perhaps they are figuring in Trump’s “brand” value. Although on that measure, the prospectus says that Trump is only “required to post certain of his social-media messages there first…And the Truth Social exclusivity on each post only lasts for six hours. [and he] can even cancel this agreement with 30 days’ notice, ‘at any time on or after February 2, 2025.'” Which is suspiciously just two weeks after Inauguration Day.
The recent surge in DWAC’s stock should be regarded with ample amounts of skepticism. The stock has had similar spikes – and subsequent declines – several times. Investors and Trump Cult disciples who bought in at $170.00 a share are still seriously screwed. But maybe they continue to believe that Trump can earn it all back with his latest business venture: grotesquely gold “Never Surrender” sneakers…
Trump only has to sell 875,000 pairs of his $400.00 "Never Surrender" high top sneakers to pay off his $350 million dollar fraud penalty.https://t.co/5kFd29ErcJ
— News Corpse (@NewsCorpse) February 18, 2024
For the record, here are some other recent stories about Trump’s misadventures in social media and the stock market…
Trump’s Truth Social Reports Massive Losses and Warns that it Could Go Out of Business
A Securities and Exchange Commission (SEC) filing by the company reveals its financial frailty. The report paints a pitiful picture of the enterprise’s prospects going forward and reveals that it has lost $31.5 million since it opened for business just two years ago.
Trump’s Truth Social Continues to Collapse as Its Biz Partner Loses Virtually All of its Funding
The funding partner for TMTG said that it will return the remaining $533 million of the $1 billion raised to finance the venture after investors canceled $467 million of commitments.
Trump Crime Syndicate: Investors Arrested for Insider Trading in Failing Truth Social Scam
Trump’s associates in his truthless, anti-social media venture were arrested and charged with insider trading. Reports indicate that “the three individuals together made more than $22 million in illegal profits.”
Truth Social Disease: Ads on Trump’s Twitter Ripoff are Mostly Scams and Trump-Fluffing Merch
Advertisers are afraid of their ads being juxtaposed with hate speech and other noxious content. Consequently, the only advertisers who are willing to shell out are sketchy scammers, conspiracy theorists, and junk peddlers.
LOCK HIM UP: Trump’s TRUTH Social Scam is Being Criminally Investigated By a Federal Grand Jury
In addition to the Grand Jury proceedings, the SEC is investigating whether TMTG and DWAC executives improperly coordinated with each other and engaged in insider trading. They have also partnered with a Chinese firm with a dubious legal past.
And check out my books on Amazon:
Thanks so much for your support.