ALBAWABA - According to Fortune, former President Donald Trump may make an incredible $3.5 billion from his 60% ownership of Truth Social, a social media company that he is planning to go public with.
With a $6 billion market capitalization, shareholders will vote on the platform's merger with Digital World Acquisition, a Special Purpose Acquisition Company (SPAC). Thanks to the ardent support of Trump, it is anticipated that the vote will succeed. Despite obstacles, such as claims of insider trading, the purchase now seems likely to go through.
Truth Social's price greatly surpasses its financial criteria, mostly because to the strength of Trump's internet fan base. The platform's share price has skyrocketed in anticipation of the SPAC merger and future IPO, drawing comparisons to memes or cult stocks.
The site has attracted a lot of attention in spite of its low earnings and revenue, evoking memories of past meme stock frenzy.
Compared to industry titans like Facebook, Truth Social has a meagre 8.9 million registered accounts. But its ardent fan base among Trump supporters has driven its price to unprecedented heights.
The same risks that come with investing in meme stocks should be considered here, so investors should proceed with caution. Trump's prior business endeavors, such as NFTs and branded goods, have seen both dramatic increases and decreases.
