Trump Media Group Plans to Launch Cryptocurrency Token

Background and Core Objectives of the Token Plan

On April 29, 2025, Trump Media & Technology Group (TMTG) announced plans to launch a utility token within its social platform Truth Social. The token will be used to pay for the Truth+ subscription service ($9.99 per month), and will gradually expand to ad revenue sharing, social interaction rewards, and payment scenarios within its financial product Truth.Fi. The token will be integrated with the “Truth Digital Wallet” and serve as the core tool for its full-platform economic system.

This move continues Trump Group’s deep involvement in the crypto space in recent years. In January 2025, the Trump administration included cryptocurrencies in the “National Strategic Reserve” and promoted relaxed SEC regulatory policies, providing policy support for TMTG’s token plan. In addition, TMTG holds over $777 million in assets and plans to accelerate its crypto business expansion through acquisitions of platforms like Bakkt.

For more on U.S. crypto policy trends, refer to JuCoin’s Trump Policy Column.

Token Mechanism and Potential Use Cases

According to disclosed information, the token will be positioned as a utility function rather than a security or investment tool. The core logic is to enhance user retention on Truth Social and build a closed-loop economy:

• Subscription Payments: Users can pay for the Truth+ streaming service using the token and enjoy discounts or exclusive content benefits.
• Social Incentives: Creators can earn tokens by posting content, which can also be used for promotion or ad placements.
• Financial Integration: The token may eventually integrate with Truth.Fi (TMTG’s financial services platform), supporting DeFi functions like lending and payments.

TMTG has yet to reveal the token’s underlying technical architecture, but the market speculates it may be based on high-performance chains like Solana or Avalanche to ensure transaction speed and low fees. TMTG has also partnered with Crypto.com to develop an “America Made” themed ETF, and the token could become a key medium of exchange in its crypto ecosystem.

Regulatory Challenges and Market Controversy

Despite a loosening policy environment, TMTG’s token still faces multiple risks:

1. Legal Compliance: The SEC has yet to clarify the regulatory boundary of utility tokens. If classified as securities, strict disclosure and registration requirements would apply.

2. Conflict of Interest: The Trump family holds 59% of the company’s shares. The token issuance could raise concerns about public officials profiting from their positions.

3. Market Credibility: The previously launched TRUMP meme coin saw a dramatic price drop (over 99% decline from January to April 2025), leading to doubts about the long-term value of the new token.

After the announcement, Trump’s TRUMP meme coin price dropped 11% within 24 hours, indicating internal competition between ecosystem tokens may dilute value.

Potential Impact on the Crypto Market

If TMTG’s token is successfully launched, it may trigger the following chain reactions:

• Deepening Political-Crypto Ties: Other political groups may follow suit by issuing affiliated tokens, promoting a new model of “campaign fundraising + community incentives.”
• Social Platform Transformation: Platforms like Twitter (X) and Reddit may accelerate their integration of crypto payment functions to attract Web3 users.
• Regulatory Framework Adjustments: The U.S. Treasury may introduce policies to limit the financialization of politically linked tokens to prevent election funding abuse.

However, the token’s utility heavily depends on the user base of Truth Social. As TMTG has not disclosed Truth+ subscription data, low ecosystem activity could cause the token to devolve into a speculative tool rather than a utility asset. Additionally, technical risks remain—Truth Social must address blockchain integration, transaction scaling, and wallet security challenges.

Outlook: Opportunities and Uncertainties Coexist

TMTG’s token plan marks a shift of cryptocurrency from a “decentralized experiment” to a “political-economic tool.” Its success or failure will test two core propositions: whether cryptocurrency can truly empower traditional social and media businesses to boost user engagement and commercial value, and how regulators will balance innovation and risk to prevent tokens from becoming tools of political exchange.

For investors, it is crucial to monitor the token’s economic model, user growth metrics on Truth Social, and the SEC’s review stance. Despite short-term market volatility, this initiative could open new pathways for the integration of social platforms and crypto technology.