Trump Media plans to distribute cryptocurrency tokens to shareholders

Source: Yellow Original Title: What Happens When the U.S. President’s Media Company Starts Distributing Tokens to Shareholders

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Project Overview

Trump Media and Technology Group Corp. announced on Wednesday plans to launch a new cryptocurrency, which will be directly distributed to the company’s shareholders, further expanding its presence in the digital asset space.

Specific Details

The operator of the Truth Social platform announced that the token will be issued in partnership with the crypto exchange Crypto.com, and is expected to run on the Cronos blockchain (CRO), which is supported by the exchange.

According to the company, each shareholder will receive an equal amount of tokens based on the number of shares they hold.

This distribution adds to the growing group of crypto projects associated with Trump and his family.

World Liberty Financial is a decentralized finance project supported by the Trump family, which already operates the tokens WLFI and the stablecoin USD1.

Earlier this year, Trump also launched a themed memecoin called TRUMP, followed by similar tokens promoted by First Lady Melania Trump.

Trump Media states that the new tokens are designed as an incentive mechanism rather than a capital tool.

These tokens do not represent equity in the company DJT and may be subject to transfer restrictions or redemption limitations.

The company added that token holders may be eligible for future benefits, including discounts or other perks related to Trump Media products.

President Trump is the largest shareholder of Trump Media, holding approximately 41% of the company’s outstanding shares according to public data.

Background of the Announcement

At the time of this announcement, the regulatory environment has become more favorable for the crypto sector following Trump’s return to the White House in January this year.

Over the past year, legislators have passed new laws to regulate parts of the digital asset industry, while regulators have paused or withdrawn enforcement actions against several crypto companies.

Trump Media CEO Devin Nunes said that the partnership with Crypto.com reflects the company’s intention to leverage blockchain infrastructure under clearer regulatory conditions.

He described the token distribution as an innovative way to reward shareholders while supporting transparent market practices.

Significance

The cryptocurrency plan is one of many new initiatives outlined by Trump Media in recent months.

The company’s announced plans cover multiple sectors, including nuclear fusion, cryptocurrency accumulation, financial services, and sports betting market development.

Trump Media’s stock rose about 3.3% in pre-market trading after the Wednesday announcement.