Trump's Truth Social posts are already being sold with early access - Associated Press
Kyiv • UNN
Trump Media launches Truth API, which provides high-frequency traders with access to the US president's posts via high-speed channels. Critics cite ethical risks and unequal conditions for retail investors.
Trump Media & Technology Group, which owns the social network Truth Social, is beginning to sell Wall Street traders accelerated access to posts by U.S. President Donald Trump and other influential platform users. UNN reports this, citing Associated Press.
Details
The new service has sparked debate over the possible use of the presidential office for private enrichment and creating advantages for high-frequency traders.
The service, called Truth API, is set to transmit Trump's publications directly to trading firms via high-speed channels. The cost of access will be about $100,000 per month.
Such channels allow traders to receive and automatically analyze information faster than regular social network users. This is especially important for high-frequency trading, where transactions in stocks, currencies, or other assets are executed within milliseconds.
Recall that Donald Trump regularly uses Truth Social to announce important political decisions, particularly regarding tariffs, military conflicts, international agreements, and the leadership of the Federal Reserve System. His statements have repeatedly caused sharp fluctuations in the prices of stocks, bonds, currencies, and oil.
Why the idea of selling the American leader's posts has faced criticism
However, Irene Aldridge, head of the trading firm Able Alpha Trading, has already stated that the new service creates serious ethical risks.
"We have a President of the United States who is at the center of all events, makes all decisions, and discloses this information in advance to a limited circle of people,"
Trump Media, for its part, dismissed the criticism. The company stated that opponents misinterpret the service's operating principle and do not understand the difference between public and non-public information.
Truth Social representatives also claim that posts will be published for traders and the general audience simultaneously. At the same time, critics emphasize that the key factor is not the formal time of publication, but the speed at which information reaches the user and is processed by automated systems.
Joe Saluzzi, co-founder of Themis Trading, noted that trading firms that purchase access and use specialized algorithms will be able to react to the president's statements faster than ordinary investors.
"Whoever buys the information and has a system to process it will be able to act faster than you and I. The one who loses is always the retail investor,"
According to Saluzzi's estimate, about a hundred companies specializing in high-frequency trading may be interested in the new service.
How Trump affects the value of company stocks
In recent months, the U.S. president has also begun to mention individual public companies more often on Truth Social. Trump's positive posts about them have caused a rapid increase in stock value.
In April, after a publication in which the U.S. president praised Palantir Technologies and noted its stock ticker, the company's shares saw their biggest short-term gain in a year.
Later, a Trump post congratulating Intel also caused an immediate rise in its shares during after-hours trading.
Dylan Hedler-Godette, an expert on federal ethics norms at the Project on Government Oversight, stated that Wall Street would be interested in receiving such publications earlier than other market participants.
Trump's company needs new revenue
According to AP, if only three companies purchase access to Truth API, Trump Media's revenue could double. Last year, the company earned about $3.7 million in revenue.
Trump Media shares have fallen by approximately 75% since Trump's return to the White House. The company continues to report significant losses, despite the president regularly publishing important political statements and decisions on the platform.
Democratic Senator Elizabeth Warren has already criticized the launch of the service and threatened investigations if Democrats gain control of Congress.
We will call those responsible for this blatant corruption to answer to the American people
Recall
Trump Media & Technology Group has previously discussed the possibility of charging traders and investors up to $100,000 per month for faster access to U.S. President Donald Trump's posts on his Truth Social platform.