Trump camp expands digital financial territory
Trump Media & Technology Group (TMTG) recently submitted a trademark application called "TruthFi" to the U.S. Patent and Trademark Office, planning to develop a cryptocurrency payment platform.
Source: USPTO Trump Media Technology Group submitted a trademark application called “TruthFi” to the US Patent and Trademark Office
According to the (New York Times) report, the platform will provide services such as cryptocurrency payment processing, digital asset custody, and virtual currency trading. As soon as the news came out, TMTG shares rose by about 2%, trading at $30.49 as of press time, a rise of nearly 75% this year. It is worth noting that although this trademark application does not detail the operational details and timetable, the industry generally believes that this means that TMTG is actively deploying in the digital financial field in an attempt to expand its business territory.
"Generally speaking, if a client files a trademark application, it usually means there is a concrete plan going on behind it, and companies tend to advance related business within a few years of filing the application," said Washington trademark attorney Josh Gerben.
Potential M&A and Market Strategies
If TMTG, which currently has less than 40 employees, is to realize its ambitious plan to become an encrypted payment platform, it may need to strengthen its technical strength and operational capabilities through mergers and acquisitions or strategic cooperation. According to previous reports by (CryptoCity), TMTG is negotiating acquisitions with the cryptocurrency trading platform Bakkt. This news immediately attracted market attention, causing Bakkt’s stock price to surge by approximately 140% in a short period of time. Although Bakkt is currently facing financial pressure, its mature trading infrastructure could provide an important boost for TMTG to enter the cryptocurrency market. Although Bakkt issued a statement stating that it "does not respond to market rumors," analysts pointed out that if this potential merger comes true, it will bring significant technological and talent advantages to TMTG and help accelerate the development of TruthFi.
Trump’s policy trends trigger a series of market changes
As Trump is about to take office as President of the United States in January 2024, his cryptocurrency policy plan has begun to gradually unfold and trigger a strong response in the market. Current Securities and Exchange Commission (SEC) Chairman Gary Gensler has announced that he will resign before Trump takes office, and Federal Deposit Insurance Corporation (FDIC) Chairman Marty Gruenberg will also resign on January 19.
Source: X SEC Chairman Gary Gensler announced that he will step down on January 20 next year
The changes at the top of these regulatory agencies, coupled with the possible friendly policies adopted by the Trump camp, have promoted the overall rise of the cryptocurrency market, with the overall market value exceeding US$3.4 trillion in one fell swoop. Among them, XRP rose by 7%, hitting a three-year high, and Bitcoin once approached $99,000.
Market news indicates that the Trump team is evaluating the establishment of the White House’s first cryptocurrency adviser, and former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo is regarded as an important candidate. At the same time, Wyoming Senator Lummis also proposed to purchase 4% of Bitcoin circulation in the next five years, and suggested that the Federal Reserve convert part of its gold reserves to establish a larger US Bitcoin position.
Transformation from social media to fintech
TMTG's current main business is operating the social media platform Truth Social, which was established in 2022 after Trump was blocked by Facebook and X (formerly Twitter). Although third-quarter revenue was just over $1 million, mostly from advertising revenue from Truth Social, the company still has a market capitalization of $6.5 billion.
It is worth noting that although Trump himself does not hold an official position in TMTG, he holds 53% of the company's shares, estimated to be worth about US$3.4 billion. His eldest son, Trump Jr., also serves on the board of directors. Most of the company's top executives are composed of people loyal to the former president. composed of people. Market analysts pointed out that Trump’s attitude towards cryptocurrencies has changed significantly recently, from previous doubts to support. During the campaign, he promised to reduce regulatory restrictions and said that the future SEC chairman will adopt more relaxed regulations on cryptocurrencies. position.
The Trump family launched its own cryptocurrency project "World Liberty Financial" this year. The industry generally believes that future regulatory policy adjustments by the Trump administration may directly benefit these related companies. However, so far, TMTG has not made a formal statement on the TruthFi project or its cryptocurrency development vision, and the market is still paying close attention to its follow-up movements.
"Trump media enters crypto payments? The newly registered trademark "TruthFi" has attracted heated discussions and is worth paying attention to in the future! 』This article was first published in "CryptoCity"
