Trump's Truth Social posts can move markets. Now some users can see them first
For up to $US100,000 per month, subscribers can receive the US president's Truth Social posts milliseconds before everyone else. But experts say the bigger question is whether some traders are already getting information much earlier.
Donald Trump's social media platform, Truth Social, is now offering a premium data service that allows some investors to see his posts before they go live, potentially giving them an advantage in the market. The Trump Media & Technology Group launched the Truth Social API, with subscriptions costing between $60,000 and $100,000 per month.
Several trading firms have already signed up, sparking legal and ethical questions about whether it's appropriate for a company owned by the president to profit from selling faster access to his market-moving statements. However, researchers warn that there may be even bigger concerns, as data suggests some traders could already be receiving information before Trump's posts appear publicly.
High-frequency traders, who use algorithms to execute trades in fractions of a second, are most likely to benefit from this service. The president's family remains the controlling shareholder in Trump Media, meaning Trump could benefit financially if the company generates more revenue. Truth Social's shares have fallen by 75% since Trump returned to office last year, despite the platform being used to announce major policy decisions.
Finance researcher Dewan Rahman says the service's legality depends on whether subscribers are simply paying for speed or obtaining advance knowledge of market-moving announcements.
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