Trump Media has announced plans to launch a new digital token, marking the company's first significant move into the cryptocurrency market.
Current shareholders will receive tokens in the form of an airdrop, rewarding them with a stake in the company's new digital ecosystem.
Trump Media is launching a new token, shareholders will receive airdrops and platform benefits
Trump Media and Technology Group Corp. (DJT), which manages the services Truth Social, Truth+ and FinTech platform Truth.Fi, plans to distribute a new digital token to shareholders in collaboration with Crypto.com.
The distribution will utilize Crypto.com's Cronos blockchain, which is designed for speed, scalability, and seamless network connectivity.
According to the plan, each final beneficiary of DJT's shares is entitled to receive one digital token for each whole share. Token holders will occasionally receive rewards based on products from Trump Media, such as Truth Social, Truth+, and Truth Predict. The goal is to reward shareholders and increase user activity on the company's platforms.
Trump Media's CEO and chairman Devin Nunes stated: “We look forward to leveraging Crypto.com's blockchain technology and clearer regulations to implement this unique token distribution, reward Trump Media's shareholders, and promote fair and transparent markets.”
The company emphasizes that tokens are not securities and do not represent ownership in Trump Media. They may not be transferable or exchangeable for cash. More information about the distribution schedule and the benefits of the token will be published next year.
Industry observers estimate that this is one of the first visible cases where rewarding shareholders is combined with digital tokens in the media sector.