Donald Trump's "Social Truth" panics Wall Street
A mobile application called "Truth Social" is available for pre-order on the Apple App Store, but it is impossible to know if it is free or paid.
Chris DELMAS AFP
Text by: Dominique Desaunay Follow
A little less than a year after being banned from Facebook and Twitter, Donald Trump is about to launch his own social network called "
The Trump Media and Technology group, which is to allow the social network of the former president of the United States to go public, is currently experiencing a meteoric rise on Wall Street.
I'll be back!
I will come back!
“, Promised like a Terminator in the phase of dismantling the former tenant of the White House, furious at his exclusion from most social networks on the web planet.
But, banned from the Twitter and Facebook platforms, the former US president decided to take revenge by launching his own social network entitled "
”, or the social network of truth, in French.
This platform would make it possible to "
resist the tyranny of the tech giants
" who "
used their power to silence dissenting voices in America,
" he said in a statement last week.
To read also:
Donald Trump announces the launch of “Truth Social”, his own social network
A stock market tip
But barely announced, the future "
" network unleashes the passions of investors on the Wall Street stock exchange. In order to finance the
Trump Media and Technology Group
, the company responsible for developing this new social network, Donald Trump used a stock market trick popular in financial circles. By way of a Spac whose acronym stands for “Special Purpose Acquisition Companies”.
These virtual and already listed companies are empty shells created from scratch by stock market stars.
They offer investors to finance, through them, a company with strong potential in the digital field.
To seduce them, these speculative companies announce their imminent merger with the company for which they raise cash by selling shares.
Baited by the promise of quick wins, investors, who have no visibility on the object of their investment, then sign a real blank check.
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: Chamath Palihapitiya, king of SPAC
A game of poker that was particularly profitable for the "Truth Social" project, because the action of the Spac called
Digital World Acquisition Corp
, which was working behind the scenes on behalf of the new company responsible for administering Donald's social network. Trump, soared 740%, in just two trading sessions in September, and thus raised nearly $ 300 million.
The difficulties of the Trump company
But raising funds to create a new social network may not be enough to guarantee its success. The press release for the general launch of the platform, which is scheduled for 2022, does not mention any details regarding its business model. In addition, a mobile application called "
" is available for pre-order on the Apple App Store, but it is impossible to know if it is free or paid.
While the test version of the application was announced as accessible to certain
" as of November, the site which hosted the program was hacked less than two hours after it went online.
And the difficulties are piling up for the Trump company, mainly on the financial side, because two major investors in the “
” project have just withdrawn, not wanting their names to be associated with that of the former American president.
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