More than 10 Wall Street firms pay up to $100,000 for faster Truth Social posts as Trump Media crypto losses mount

Trump Media has secured agreements with over a dozen Wall Street firms to access its new Truth API service. The Truth API enables high-frequency traders to receive expedited access to market-moving posts from prominent accounts on Trump’s Truth Social platform. The service launched in early August, targeting traders who utilize technology to execute rapid trades based on real-time market data.

According to Trump Media's interim CEO Kevin McGurn, the monthly fees for the Truth API range from $60,000 to $100,000, as reported by BBC News. The service could provide traders with a competitive edge, as it allows them to respond to crucial information from Trump's platform before it becomes widely disseminated. Trump Media announced the initiative in July, aiming to offer Wall Street firms and institutional investors faster access to Truth Social posts.

However, the business model has raised ethical and legal concerns, as the company, which is majority owned by Trump's family, could profit from his own statements. Despite its new revenue stream, Trump Media reported a staggering quarterly loss of $238 million in the April to June period, more than ten times larger than the previous year.

The loss is primarily attributed to significant cryptocurrency losses, as the company's assets are heavily invested in digital currencies. Moreover, Trump Media's efforts to diversify beyond social media have not yet yielded substantial revenue, with revenue only increasing by 89% compared to the same period last year. The Truth API represents one of the company's attempts to generate income from its social media platform while exploring other digital asset ventures.