According to the statement, the token will not represent equity in the company and may not be transferable or exchanged for cash.
President Donald Trump’s publicly traded communications company, Trump Media (ticker DJT), plans to distribute a new blockchain-based token to shareholders in partnership with Crypto.com.
The move represents Trump Media’s latest foray into the world of crypto tokenomics, including launching a multi-billion-dollar bitcoin treasury, and its latest arrangement involving the Crypto.com exchange platform, including previous plans to acquire the exchange’s native CRO token.
“We look forward to utilizing Crypto.com’s blockchain technology and improving regulatory clarity to implement this first-of-its-kind token distribution, reward Trump Media shareholders, and promote fair and transparent markets,” Trump Media CEO Devin Nunes said in a statement on Wednesday.
The tokens will be sent to owners of DJT stock based on their stock holdings, though they will not “in and of themselves represent an ownership interest in Trump Media or any other entity, nor should token holders expect rewards to include profits from the essential managerial efforts of others,” according to the announcement.
In other words, Trump Media does not want to confuse these tokens with its corporate equity or suggest they follow securities laws. Instead, the asset is intended to function like rewards tokens, and may potentially offer “benefits or discounts tied to Trump Media products such as Truth Social, Truth+, and Truth Predict” offered throughout the year.
“Additional details regarding the planned distribution will be forthcoming in the new year,” the company said. The token may not be transferable and cannot be exchanged for cash, and could leverage Crypto.com’s Cronos blockchain, the statement said.
Shares of DJT are up 4.12% at publication time to trade around $13.09, according to Google Finance.
Of note, President Trump and the first lady previously issued the TRUMP and MELANIA memecoins, which have not only failed to reclaim the all-time highs reached during their pre-inauguration launch weekend but have since slid steadily lower, with both tokens now trading at record lows.
Crypto.com and Anchorage Digital provide custody for Trump Media’s Bitcoin treasury, which currently stands at around 15,000 BTC, worth $1.5 billion, according to The Block’s data.
Trump Media also previously signed a deal with Crypto.com to develop and launch a series of exchange-traded funds (ETFs) under the Truth.Fi brand, including multiple crypto ETFs, and a predictions market platform.
