The president's media and technology company of the United States of America In early August, Trump Media & Technology Group (TMTG) launched a paid service that gives companies and investors faster access to posts from the Truth Social social network.
The Truth API includes access to posts from ten of the most prominent accounts on Truth Social, including the account of the President of the United States Donald Trump. With around 13 million followers, Trump is by far the most followed user of this network, so his posts are among the most important information it can offer.
Photo: Pixabay/sergeitokmakovTruth Social
A hundred thousand dollars for information that comes faster
The service is called the Truth API and allows users to post from selected accounts on the Truth Social network directly, in real time and with a delay measured in milliseconds.
This means that a company using the Truth API does not have to wait for a post to appear on the screen, as a normal user would. It can obtain information practically immediately and then enter it into its computer systems and algorithms for trade.
According to CNN, TMTG claims that clients are willing to pay between $60 and $100 per month for this service. In the meantime, the company announced that it has already attracted more than ten clients, among them financial companies and firms engaged in high-frequency trading (High-Frequency Trading).
Why would anyone pay tens of thousands of dollars for a very small time advantage? Because Trump's announcements can directly affect the financial markets.
The President of the USA publishes positions, announcements and decisions on this network that can affect the expectations and decisions of investors, and therefore the prices. action, bond i OIL.
That's why, for example, companies engaged in high-frequency trading in which computers and fast programs conclude thousands of purchase and sale contracts in just a few micro or nanoseconds can profit fiercely.
Photo: AP Photo/Mark SchiefelbeinDonald tramp
Lawsuit against Trump
On Wednesday, August 12, media organizations Freedom of the Press Foundation and The Intercept sued Donald Trump over the Truth API service. They said in the lawsuit that allowing faster access to his posts to those who pay for the service is "corrupt and unconstitutional."
The lawsuit alleges that the Truth API violates the First Amendment of the US Constitution, but also violates the Fifth Amendment by giving special access to information to those who can pay tens of thousands of dollars.
In the lawsuit, submitted to the District Court in New York, is asking the court to stop the President of the United States from publishing official government information exclusively on the Truth Social network.
Photo: AP Photo/Alex BrandonDonald tramp
A loss-making company
TMTG is majority owned by Donald Trump. The company was launched after Trump had his Twitter, Facebook and YouTube accounts suspended following the attack on the Capitol on January 6, 2021.
TMTG went public in 2024, but has been operating at a loss since then.
The company this month reported a second-quarter loss of $238 million, nearly twelve times the $20 million loss reported in the same period last year. Much of this year's loss is related to investments in cryptocurrencies.
With the introduction of the Truth API service, TMTG is now trying to monetize information that can be very valuable to participants in the financial markets.
Sources: BBC, CNN, Los Angeles Times, Reuters
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