AS Trump Media & Technology Group Cor. DJTthe former president’s recently listed media company Donald Trumpfell more than 21% on Monday, his granddaughter Mary Trump suggested there’s more to the company’s public debut than meets the eye.
Manna of the countryside: According to Mary Trump, TMTG, the parent of Social Truth platform, could potentially serve as a “front for a campaign finance scam.”
In a Substack post, he questioned the company’s $10 billion valuation, considering reported annual revenue of just $4.1 million and losses of $58 million.
“The merger of Trump Media with Acquisition of the digital world it was a massive infusion of money to Donald – a gift disguised as an investment,” he said.
Mary Trump underlined the rules governing donations to electoral campaigns, noting the limits set by the Federal Election Commission (FEC) and the transparency required from donors.
“Now that Truth Social is a publicly traded company, however, supporters have a surreptitious new way to support Donald financially without having to make a direct political donation. And therefore bypassing the FEC donation limits and disclosure requirements,” she said.
For his supporters, it’s a win-win proposition, Mary Trump said, adding that if the stock gains, they profit, and if it falls, they can write off the loss as a tax deduction.
He stressed that his uncle will be free to sell his shares or leverage them for a loan in September, just before the election.
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Foreign Threat: While FEC laws prohibit foreign nationals from contributing to political campaigns, they do not apply to the purchase of publicly traded stocks, Mary Trump said. Foreign governments could potentially buy TMTG shares to acquire a stake in the media company, and Donald Trump would be obligated to do them a favor, she said.
The psychologist and podcaster said huge amounts of money funneled to her uncle from stock sales may help him use it for his cash-hungry campaign.
A report from the Financial Times states that Pro-Joe Biden the groups entered 2024 with $118 million at their disposal compared to the $66 million held by Donald Trump’s team. At the end of February, Biden’s campaign and the Democratic National Committee had more than double that of Trump and the Republican National Committee.
The report also notes that Biden became the first president in history to raise more than $1 billion from donors in the 2020 election and thus surpassed Donald Trump. “Money matters in American elections; the congressional or presidential candidate with the most wins wins,” he said.
Mary Trump said: “The potential for U.S. donors and foreign governments to circumvent FEC laws by purchasing shares of Truth Social is of great concern. The identity of those providing financial support to Truth Social – and the extent of that support – may be difficult to ascertain.”
“This lack of transparency could, in turn, have serious implications for our democracy, as Donald becomes beholden to our nation’s adversaries.”
The plan could prove counterproductive: As TMTG shares plummeted following the company’s dismal performance in 2023, Mary Trump said “the plan may already be backfiring.”
“Without a solid financial foundation – which has never been the case for Truth Social – the company’s ability to operate, let alone pose a threat, is significantly compromised,” he added.
“Donald’s bubble bursts,” Mary Trump said, noting that her net worth is already reduced by $1 billion with Monday’s plunge in TMTG stock. “Donald supporters most likely just watched their money go up in flames,” she added.
The psychologist also stated that “Truth Social is doomed to failure”, given the technical issues, user interface issues, and lack of unique content. User numbers are down 51% year over year, he noted.
“When we look even an inch beneath the surface of Donald’s supposed success, all there is to see are broken promises, lies and failures. When investors saw the truth, they ran,” Mary Trump said.
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