Investment anxiety is mounting after the Trump Media & Technology Group (TMTG) failed to achieve a late March deadline imposed by CEO Devin Nunes, a congressman-turned-executive who said the app was slated to be “fully operational” by the month’s end.
Back in February, TMTG launched ‘Truth Social,’ a social media platform backed by former US President Donald Trump that touts free speech and appears to be 45’s response to “Big Tech” platforms like Twitter, Facebook, and YouTube–all of which have banned the former US president.
The endeavor came as a merger between TMTG and investors via a ‘special purpose acquisition company,’ or SPAC, called Digital World Acquisition Corp.
Trump’s adult sons are now active on the platform, as well as an array of GOP lawmakers, including Reps. Marjorie Taylor Greene (R-GA), Matt Gaetz (R-FL) and House Minority Leader Kevin McCarthy (R-CA). However, the former US president has been glaringly inactive since his initial post.
At the same time, the site’s newcomers have flocked to the former president’s page, as 45’s account has recently amassed more than 800,000 fans.
Shares of the SPAC have dropped 35% since March 4, including a 2% loss on Friday.
Sources told Axios that technical issues are the main barrier preventing app developers from eliminating the waitlist. Downloads have significantly declined to just 8,000 per day, compared to a 170,000-download high in February.
Flop or not, the SPAC appears to have piqued the interest of federal securities regulators who are now investigating the startup. A filing with the US Securities and Exchange Commission showed that the SPAC has opted to shield the identity of several individuals in leadership.
The technology team of Digital World Acquisition Corp., the ‘special purpose acquisition company' formed to launch Truth Social following a merger between investors and Trump Media & Technology Group. [November 2021 SEC filing]
In addition to a lack of information on key leadership roles like chief financial officer (CFO), the SPAC also refused to disclose the names of investors who pledged some $1 billion in private investment in public equity (PIPE) financing to assist in helping Truth Social go public.
The SPAC claimed that accounting delays were behind the delayed issuances.
Nunes and TMTG are expected to expand the Trump-labeled brand beyond social networks, and into the realm of news, streaming, and even a cloud-computing platform.
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