Admin correction: A previous version of this story included a quote that incorrectly stated Truth Social had disclosed a loss of $73 million since its launch. The actual number is approximately $31 million. This story has been updated with the corrected quote.
When Donald Trump announced the launch of Truth Social he boasted that it would be bigger and better than anything that had come before it, including Twitter (which some call "X"), the platform that had banned him for trying to incite a violent insurrection. To put it mildly, Truth Social has not lived up to the hype.
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The failure of Truth Social doesn't come as a surprise to anyone who has tracked Trump's record in business. He has left a trail of bankruptcies, closures, lawsuits, and fraud for decades. And true to form, his Trump Media & Technology Group (TMTG) has produced a website that is neither truthful nor social. In fact, it's become something of a joke...
SEE THIS: The Biden Campaign is Now on Trump’s Truth Social For Your Entertainment Pleasure
The latest dire news about Truth Social comes from a Securities and Exchange Commission (SEC) filing by the company that reveals its financial frailty, The report paints a pitiful picture of the enterprise's prospects going forward...
Since launching, former President Donald Trump’s Truth Social and its parent company Trump Media and Technology Group took in $3.7 million in net sales, and lost tens of millions of dollars.
The numbers are the first time that any internal financial details on the social platform have been shared publicly, and they suggest that while Trump has made Truth Social his primary social media platform, it has not been translating into meaningful revenue for the tech startup, which is owned by Trump Media & Technology Group (TMTG). [...]
The financial situation of TMTG is such that “TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern,” according to the filing. [...]
When putting aside the value of the derivative liability, the company has lost $60.5 million since it launched, including operating losses and interest payments. If you include the value of the derivative liability, you would get a loss of $31.5 million.
The filing also notes that "management has substantial doubt that TMTG will have sufficient funds to meet its liabilities," and that "it may be difficult to raise additional funds." That's largely due to the breakdown of TMTG's plan to merge with Digital World Acquisition Corp (DWAC), a special purpose acquisition company that they hoped would lead to a listing on the stock exchange and a billion dollars in pledged investments. That deal has not only gone south - along with the pledged investments - but DWAC has been tangled up in legal probes alleging fraud and misconduct.
Furthermore, Trump's latest financial disclosure form reveals that his 90% controlling stake in TMTG is now valued at between $5-$25 million. That's a decline of more than 97% from the $875 million the venture was valued at when it was announced. And given the brief history of this boondoggle, he's lucky to have that. It was a scam from the start, and Trump knew it. He even removed himself and Don Jr from the board of TMTG just weeks before subpoenas were served.
Meanwhile, here's a few recent stories about Trump's misadventures in social media...
Trump’s Truth Social Continues to Collapse as Its Biz Partner Loses Virtually All of its Funding
The funding partner for TMTG said that it will return the remaining $533 million of the $1 billion raised to finance the venture after investors canceled $467 million of commitments.
Trump Crime Syndicate: Investors Arrested for Insider Trading in Failing Truth Social Scam
Trump's associates in his truthless, anti-social media venture were arrested and charged with insider trading. Reports indicate that "the three individuals together made more than $22 million in illegal profits."
Trump’s Truth Social CEO Whines that Shareholders in His Alt-Twitter Scam Are Being Wiped Out
Nunes visited Newsmax to swing open his tear ducts with mournful moaning about the catastrophic business for which he is the chief executive.
Trump Made Less than $200 on Truth Social According to His FEC Financial Disclosure
As for Trump, he was reported to own 90% of TMTG, which earned him less than $200 according to his financial disclosure. That’s hardly representative of the huge success that Trump has claimed Truth Social to be.
Trump’s ‘Truth Social’ Faces Legal and Financial Turmoil Amid Disclosures of Russian Funding
The report notes that the sources of the funding include the off-shore Paxum Bank, based in the Caribbean island nation, Dominica. It is notorious for “providing banking services for the pornography and sex worker industries, which makes it higher risk of engaging in money laundering and other illicit financing.”
Truth Social Disease: Ads on Trump’s Twitter Ripoff are Mostly Scams and Trump-Fluffing Merch
Advertisers are afraid of their ads being juxtaposed with hate speech and other noxious content. Consequently, the only advertisers who are willing to shell out are sketchy scammers, conspiracy theorists, and junk peddlers.
LOCK HIM UP: Trump’s TRUTH Social Scam is Being Criminally Investigated By a Federal Grand Jury
In addition to the Grand Jury proceedings, the SEC is investigating whether TMTG and DWAC executives improperly coordinated with each other and engaged in insider trading. They have also partnered with a Chinese firm with a dubious legal past.