TMTG (Trump Media and Technology Group) recently proposed a social media platform called Truth Social.
The former United States President, Donald Trump was banned from Twitter and Facebook in 2021. This happened probably due to the United States Capitol Attack in 2021. Following this, he also launched a site called “From the Desk of Donald J. Trump”.
On this site, he posted an announcement in a Short tweet format. However, this site was shut down in less than a month.
The former President then made a prospect to launch a new social media platform- Truth Social.
Technology and Finance
The posts made by the users are called ‘Truths’. The reposts are called ‘retruths’. In a similar manner, the news feed is called as ‘Truth feed’. The idea is very similar to the social media site Twitter.
Mastodon, a free and open-source social network hosting software is customized for Truth Social.
After the announcement of the launch of Truth Social, SPAC and DWAC announced a merger with TMTG. TMTG was valued at $875 million on 21 October 2021.
After the announcement of Truth Social, DWAC also saw a rise of 400%.
The highly volatile stock of the company was compared to GameStop Short Squeeze. SPACs raise funds from investors by first selling the shares to the public. They then acquire unknown private companies.
Many of the SPACs investors were unaware of the fact that their money will be used to finance Trump’s company.
Truth Social Raises $1 Billion from Investors
TMTG said that along with SPACs and PIPE, Truth Social has raised $1 billion in December 2021. The investors for the company are unidentified. The funding is expected to reach up to $3 billion as reported by The Financial Times. According to the Digital World Stock Prices, the company is valued at $4 billion as of 3rd December 2021.
Donald Trump in a statement said that his company will be “in a stronger position to fight back against the tyranny of Big Tech.”
Trump said in a statement, “in a stronger position to fight back against the tyranny of Big Tech.” He also added, “America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology.”
Launch of Truth Social
This website is being regarded as Trump’s attempt to gain his megaphone back.
It was claimed that it will have a beta trial in November, but it missed its deadline. This highly awaited social media site is set to launch in early 2022.
Jason Miller praised the platform Truth Social and said it might affect Twitter and Facebook by lowering their market share.