President Trump’s media company said Tuesday it will launch a betting market on Truth Social in partnership with Crypto.com, a move that could raise questions about his entanglement with regulated industries.
Trump Media & Technology Group Corp. said it will be the first social media platform to join forces with Crypto.com/Derivatives North America so users can tap into prediction markets, an increasingly popular form of betting.
“We are thrilled to become the world’s first publicly traded social media platform to offer our users access to prediction markets,” said Devin Nunes, a former congressman and now CEO of Trump Media. “Truth Predict will allow our loyal users to engage in prediction markets with a trusted network while harnessing our social media platform to provide totally unique ways for users to discuss and compare their predictions.”
Mr. Trump’s media company controls Truth Social, the streaming platform Truth+ and the financial technology brand Truth.Fi.
The partnership could add to questions about Mr. Trump’s family business holdings and entanglement with the crypto business.
Mr. Trump is taking a series of crypto-friendly steps after the industry donated heavily to his campaign and inauguration, and the Trump family is investing heavily in crypto assets and promoting a cryptocurrency meme coin, $Trump.
Mr. Trump recently pardoned Changpeng Zhao, the founder of Binance, who had pleaded guilty to money laundering. Binance has business ties with the Trump family-aligned World Liberty Financial, a cryptocurrency company, so the pardon raised condemnation from Democrats.
Crypto.com is regulated by the Commodity Futures Trading Commission.
Prediction markets are exchanges in which people bet on the outcomes of events, such as elections and sports games.
People buy shares at prices based on what the crowd of bettors believes will happen. If they are correct, they get a payout, while those who choose the wrong option get nothing.
Bettors who go against the wisdom of the crowd can get a bigger windfall because their share would cost less than those who followed the crowd and paid more for their share.
“For too long, global elites have closely controlled these markets. With Truth Predict, we’re democratizing information and empowering everyday Americans to harness the wisdom of the crowd, turning free speech into actionable foresight,” Mr. Nunes said.
The companies said they would begin trial-testing on Truth Social in the “near future” before a full U.S. launch. If successful, the features will be available globally.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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