Trump Group launches Truth.Fi to enter encryption finance, stock price rises 15%

Recently, Trump Media Technology Group (TMTG) announced a major initiative, launching a financial service and fintech brand named Truth.Fi, marking the company's official entry into the financial sector. This news quickly triggered a market response, with the company's stock DJT rising by 15%.

TMTG plans to invest $250 million of its more than $700 million cash reserves, with the investment scope including not only traditional investment tools but also SMA (Separately Managed Accounts), ETFs, Bitcoin, and other crypto-related securities.

However, this move has also raised some concerns. Ethical experts have stated that, given Trump’s potential influence on the regulation of the financial and cryptocurrency industries, this business behavior could lead to conflicts of interest. They pointed out that future heads of regulatory agencies appointed by Trump may face difficult questions about how to deal with issues that affect their boss's financial interests.

A former senior government ethics lawyer further stated that even if Trump transfers his shares to a trust, it cannot completely eliminate conflicts of interest. He also expressed concerns that Trump's investments could pump the asset prices in the cryptocurrency market, thereby posing a systemic risk to the overall economy.

Despite these controversies, the CEO and chairman of TMTG remains optimistic about the prospects of Truth.Fi. He describes this initiative as a natural extension of the Truth Social movement, emphasizing that the company is expanding from a free speech social media platform to streaming services and ultimately venturing into investment products and decentralized finance.

Truth.Fi's products and services are expected to launch in 2025, but this requires approval from regulatory authorities and sufficient financial support. This business expansion aims to enhance the existing product portfolio of TMTG, including the Truth Social platform and the Truth+ streaming service.

It is worth noting that just recently, Trump launched a meme coin called Trump, which has sparked quite a controversy. Reports indicate that TMTG has been working hard to create a social network that can compete with mainstream social networking platforms.