Trump Media to airdrop crypto tokens to shareholders, sets Feb. 2 record date Trump Media and Technology Group said Tuesday it will airdrop “new digital tokens” to shareholders, naming Feb. 2 as the record date for eligibility. The Sarasota, Fla.-based Truth Social operator said the initiative will include “various rewards” for investors but provided few details about the token’s utility. Key mechanics and restrictions - Only beneficial owners who hold at least one full share as of Feb. 2 will be eligible. The company warned that shareholders designated as an “objecting beneficial owner” (OBO) by their broker could face delays and urged investors to check their brokerage status. - Trump Media has said the tokens will not represent an ownership interest in Truth Social or any company, and it does not expect the tokens to be transferable or redeemable for cash. Non-beneficial owners will not receive the distribution. Crypto infrastructure and partners - The tokens will be “minted” in partnership with Crypto.com on the Cronos blockchain. Crypto.com already powers Trump Media’s prediction market product, Truth Predict, and previously announced plans to integrate its wallet infrastructure with Truth Social. - Trump Media has signaled broader crypto integration across its businesses, including fintech brand Truth.Fi, and said the token program could include discounts for Trump Media products and other rewards. Regulatory and political context - CEO and Chairman Devin Nunes said the company’s planned use of Crypto.com’s blockchain is being carried out in accordance with SEC rules. The SEC closed an investigation into Crypto.com last March. - Crypto.com’s parent, Foris DAX, spent about $2.8 million on lobbying in 2024 and donated to PACs backing Trump’s re-election bid—contributions that were highlighted in a letter from Democratic lawmakers. Market reaction and broader trends - Trump Media shares traded around $14.19, up roughly 2.2% on the day, according to Yahoo Finance. Cronos (CRO) was down about 5% over the past day at roughly $0.09 on CoinGecko. - The move comes as traditional finance prepares for tokenized securities (for example, initiatives at the NYSE), but Trump Media was careful to stress these tokens are not tokenized equity. The rollout also echoes past industry caution—firms such as Coinbase have been careful about issuing tokens tied to projects they incubate amid regulatory scrutiny. What to watch - Investors should confirm their brokerage status and that they hold at least one full share by Feb. 2 if they want to be eligible. Details on token functionality, transferability and the timing of the airdrop remain sparse; watch for follow-up disclosures from Trump Media and Crypto.com as the record date approaches. Read more AI-generated news on: undefined/news

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