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Trump stands to profit by selling fast access to his social media posts
AP News • • business
Key Points:
- President Donald Trump's Truth Social is launching a paid service called Truth API, offering Wall Street traders early access to his social media posts, which often move markets with policy announcements and company endorsements.
- The service raises concerns about insider trading and conflicts of interest, as traders with advanced knowledge could profit from Trump's market-moving posts before the general public sees them.
- Truth Social claims the information is released simultaneously to all users, but critics argue that the timing of receipt and processing advantages high-frequency traders, disadvantaging retail investors.
- Trump’s posts have previously caused significant stock price movements, such as surges in Palantir and Intel shares following his endorsements, highlighting the potential financial impact of early access to his posts.
- The Truth API service aims to generate revenue for Trump Media & Technology, which has suffered significant financial losses and a steep stock decline since Trump's presidency began, but faces potential scrutiny from Democratic lawmakers concerned about corruption.
