Trump Media and Crypto.com have scaled back their partnership, ending plans to integrate prediction markets into Truth Social. Trump Media has also canceled an agreement to purchase billions of dollars’ worth of Cronos (CRO) tokens.
“After analyzing these proposed ETFs and DAT from every angle, we’ve reached the same conclusion: moving forward under current market conditions doesn’t make sense,” Kris Marszalek, CEO of Crypto.com, said in a statement to Bloomberg.
“We will continue to pursue other ETF opportunities. As for the CRO committed to the DAT, we’ll find a better way to allocate these resources in order to drive revenue, increase demand, and grow the value of the ecosystem.”
When Trump Media announced plans to buy the CRO token in August last year, the price skyrocketed to $0.33. It has now fallen to $0.047, a decline of over 85%.
Truth Predict Plans Abandoned
Trump Media had already canceled plans to launch a standalone prediction market platform, Truth Predict, as part of the Crypto.com partnership.
When announcing plans to launch Truth Predict last year, Devin Nunes, Chairman & CEO of Trump Media, commented, “We are thrilled to become the world’s first publicly traded social media platform to offer our users access to prediction markets.”
Nunes left his role in April this year and was replaced by interim CEO Kevin McGurn. Shortly after the change in leadership, the company scaled back plans to launch Truth Predict. It has now shelved plans to integrate Crypto.com markets directly into Truth Social.
Truth API Launched to Aid Market Traders
As an alternative, Trump Media recently announced plans to offer a Truth API that would give traders early access to posts on Truth Social.
“Markets already move on Truth Social posts,” said McGurn. In particular, posts by the President, who has the most followers on the platform, can have large effects on prediction markets.
The President frequently announces major policy decisions on Truth Social first. The API enables market traders to receive advance notice of these decisions, allowing them to profit from markets that have not yet reacted.
Others inside the White House have already been using insider information to trade on prediction markets. Trump’s teleprompter, Gabriel Perez, used his role to trade on what the President would say in his speeches. The White House said he has now left his role amid an ongoing investigation.
The API launched at the start of this month. McGurn added, it has been “designed for organizations most affected by the cost of delayed information.”
Possible Partnership With Kalshi or Polymarket
While it all but ends the company’s deal with Crypto.com, it opens the possibility of Trump Media striking a partnership with other platforms. Kalshi and Polymarket have already formed several media partnerships and also have ties to the Trump family.
Shortly after the election, Donald Trump Jr. became a strategic advisor to Kalshi and has since taken up the same role at Polymarket, investing through his firm 1789 Capital.
Trump Jr. serves on Trump Media’s board of directors and is also the sole trustee of his father’s 41% stake in the company. The shares were transferred to a trust after Donald Trump was elected President.
