Trump’s new social media company is his biggest scam yet

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As you have probably heard before, Donald trump announced on Wednesday night that he would be launching his own social media network, the embarrassing name TRUTH Social. For those of you who are scratching your heads and wondering, but wait, hasn’t Trump already started a new social media company? you’re probably thinking (1) of one of the right-wing networks tangentially associated with the ex-president, like Gab, Parler, or Gettr, or (2) something called “From the Desk of Donald J. Trump”, the blog that posted Trump’s comments and was closed after just a month because it had almost no readers.

Obviously, the lack of readers upset the former president, who has spent much of the past decade tweeting every deranged thought that came through his mind, of “I would like to send my best wishes to everyone, even to enemies and losers, on this special date September 11 “to” NEVER, NEVER THREAT THE UNITED STATES AGAIN OR YOU WILL SUFFER AS LITTLE THROUGH HISTORY HAVE NEVER SUFFERED “to” An “extremely credible source Called my office and told me that @BarackObama’s birth certificate is a fraud. Unfortunately for Trump, his ban on Twitter, for inciting insurgency, remains in effect. Hence the Social TRUTH.

Like most of Trump’s initiatives, TRUTH Social is incredibly vile and embarrassing. On the one hand, even before its launch, by The Washington Post, patriotic pranksters were able to find a seemingly unseen version and post “a photo of a pig defecating on the ‘donaldjtrump’ account”, causing it to be taken offline. On the other hand, the conditions of use of the network require users to refrain from “excessive use of capital letters”, which is to say the only way Donald Trump knows how to type. Then there is also the fact that TRUTH Social, presented as a vehicle for “stand[ing] up to the tyranny of Big Tech, “which conservatives say hates free speech, prohibits users from saying anything to” denigrate, tarnish or harm, in our opinion, us and / or the Site ”. Meanwhile, the whole thing is basically a crappy version of Twitter. Speak To post:

The site looks almost entirely like a Twitter clone: ​​a user can post truths, which are like tweets, or re-truths, which are retweets. There is also a news feed, called Truth Feed, a notification system that lets users know “who is interacting with your TRUTH,” says the social network’s App Store profile.

So yes, the whole thing already looks like a big flop that will undoubtedly have very few users, and Trump himself will likely miss the app and only post there sporadically. But in this case, it doesn’t really matter, and Trump might have found a way to make millions despite the product being a joke. How? ‘Or’ What? We’re glad you asked!

TRUTH Social is formed by the merger of a new company created by Trump, the Trump Media & Technology Group, and a specialist acquisition company, aka SPAC. PSPCs, which are all the rage these days for reasons that will soon become clear, are shell companies listed on exchanges like the NYSE or the Nasdaq and exist for the sole purpose of merging with companies that wish to go public, like the Trump Media & Technology group. In this case, the SPAC TMTG will merge with is called Digital World Acquisition Corp., which is run by a guy named Patrick Orlando, a former investment banker who once co-founded a sugar trading company. Like Axios Dan Primack tweeted this morning, “Trump social media SPAC filed documents with the SEC this morning, but again this is just the press release. Nothing substantial, including management etc. So far, it’s a shell that buys a shell. Normally that would be quite embarrassing for a company, but in this case, due to the SPAC of it all, as well as the particularly gullible Trump supporters, it doesn’t matter.

Like Bloomberg Matt Levine writing :

I’m not going to pretend to make a business case for [a Trump social media network]- there’s a long history of hilarious failures in the ‘social media for Trump’ category – but maybe you can. That’s not a sure thing, in all cases. Maybe it would work, maybe it wouldn’t. When Twitter Inc. went public, it never paid off, and it was, you know, a real social network that people were using. Maybe Twitter But Trump would pay off right away, but damn it, I have some doubts. On the other hand, if Donald Trump were to start a business like “I’m going to build a social media platform for Trump fans,” could he get people to buy the shares? I think two fundamental lessons from the last few years are:

  1. You can get people to buy any stock; and
  2. Donald Trump can get people to buy anything.

So if Donald Trump were to say, ‘Hey, I’m going to start a social media business, buy stocks,’ people would buy stocks. And then he would earn a lot of money. And then if the social media platform didn’t end up being profitable – as I can’t imagine it would! – so he would still have that money? What if the social media platform didn’t end up being spear– if Trump and his team of elite technologists just couldn’t create a well-functioning online social network – then he would, uh, still have that money? What if there was no team of elite technologists at all, if no one even has tried to build the social media platform, then you see where I’m going, right?

The point is, if you’re starting a business with the goal of making it profitable, for example, you need to have a workable business plan and execute it and deal with a million different operational complexities. If you are starting a business with the goal of selling a lot of stocks, you need to get people to trust you and give you their money. There is some overlap between these things! But these are different things!



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