Having just launched, TRUTH Social isn’t public. Here’s where the TRUTH Social app is now and whether it will end up proceeding with an IPO.
Trump’s TRUTH Social hits the Apple App Store.
The TRUTH Social app landed on the Apple App Store on Feb. 21. The launch is big for Trump, who has been on a social media hiatus for the past several months. He has been banned from Twitter, Snapchat, Facebook, Instagram, YouTube, and Twitch. Trump’s involvement in the insurrection at the Capitol on January 6, 2021, was the nail in the coffin for many platforms.
TRUTH Social opened up to beta testers last week and is now open to the general public. In TRUTH Social, a post is called a “truth” and, much like Twitter, users can't edit these posts. However, it’s possible that functionality might come over time. Naturally, Trump’s personal account is verified.
TRUTH Social received $1 billion in funding from a public company.
Trump Media & Technology Group (TMTG) is the name behind TRUTH Social. TMTG also goes by T Media Tech LLC.
In December 2021, TMTG entered into a subscription agreement with publicly traded Digital World Acquisition Corp. (DWAC). The blank-check firm didn't acquire TMTG outright. DWAC contributed $1 billion in capital to help fund the venture.
Trump said about the $1 billion deal that it “sends an important message to Big Tech that censorship and political discrimination must end. America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology. As our balance sheet expands, TMTG will be in a stronger position to fight back against the tyranny of Big Tech.”
DWAC hopes to merge in a SPAC agreement with TMTG, which would lead to a TRUTH Social IPO. The deal would provide Trump’s company with up to $293 million in cash, currently held in a DWAC trust. None of the funding is available until the DWAC deal closes.
DWAC stock is up 63.09 percent YTD despite a broad market downturn.
Will TRUTH Social IPO?
TMTG executive Devin Nunes (a Republican and former U.S. Representative) says that the team hopes to be fully operational within the U.S. by the end of March. The general public launch is already coming sooner than expected. However, the company seems to have more steps to take before an IPO.
Certain features on the TRUTH Social app still need to be fleshed out, like direct messaging capability and push notifications for people you follow. The team also hasn’t developed a policy for what constitutes a verified account.
User metrics could dictate what happens with TRUTH Social. Now that the platform is live, investors and users will start to be able to determine its true potential. One user reported having to purchase a username from the National Republican Senatorial Committee (NRSC) fundraising page in order to sign up. With those hurdles, viability might be limited.