Trump Accelerates Controversy with Paid Early Access to Market-Moving Truth Social Posts
NEW YORK: President Donald Trump is set to monetize his social media presence by offering Wall Street traders early access to his policy-related posts on Truth Social, starting Saturday. This initiative raises significant concerns regarding insider trading and the ethical implications of using a public office for personal profit.
Truth Social, Trump’s social media platform, will provide select traders with sneak previews of his posts, which often influence market movements. This development could lead to substantial financial gains for Trump’s business while simultaneously prompting questions about the integrity of financial markets.
While other social media platforms and news outlets offer rapid information feeds, Truth Social’s unique position as a source of market-moving news sets it apart. Trump’s posts frequently address critical issues, including international relations, economic policies, and trade tariffs, which can significantly impact financial markets.
When asked about the legitimacy of this new service and whether it had been reviewed by legal experts at the White House, Trump’s press office declined to comment, directing inquiries to Truth Social’s parent company, Trump Media & Technology. The company issued a statement criticizing Democratic opponents for misrepresenting the service, suggesting that their objections stem from either ideological biases against free markets or a misunderstanding of public versus nonpublic information.
Opportunity for High-Frequency Traders
Trump’s prolific posting has historically led to volatility in stocks, bonds, and currencies, creating opportunities for high-frequency traders who capitalize on rapid price fluctuations. This month alone, Trump has threatened to impose higher tariffs on Canada, terminate a nuclear agreement with Saudi Arabia, and escalate military actions in Iran. Traders with advance knowledge of these posts could potentially profit from movements in the Canadian dollar, nuclear energy stocks, and oil futures.
Joe Saluzzi, co-founder of Themis Trading, estimates that around 100 high-frequency trading firms may be interested in this service, describing it as “market-moving information.” Dubbed the Truth API, this service arrives at a time when firms are increasingly investing in faster data feeds and servers that provide direct connections to news sources, enhancing their ability to react swiftly to market changes.
Traders benefit from price volatility, and Trump’s penchant for dramatic announcements and policy reversals offers ample opportunities for profit. These reversals allow traders to engage in strategies that capitalize on both upward and downward price movements, enabling them to act quickly on market shifts.
Other High-Ranking Truth Social Contributors
In addition to Trump’s posts, the service will feature content from other “high-ranking” contributors on Truth Social, potentially including his sons, Donald Jr. and Eric, who also have significant followings. Truth Social asserts that information will be released to both traders and the general public simultaneously, suggesting fairness in access. However, Saluzzi argues that the timing of information receipt is crucial, noting that those with advanced systems will always have an advantage over average investors.
“The loser is always the retail investor,” Saluzzi stated, emphasizing the disparity in access to information.
Posts on Publicly Traded Companies
Trump’s recent posts have increasingly focused on publicly traded companies, often praising those he supports, which can trigger buying frenzies. Dylan Hedler-Gaudette, an expert in federal ethics rules, described this practice as problematic, indicating that Wall Street would prefer to have advance knowledge of such endorsements.
In April, after Trump praised Palantir Technologies in a post that included its stock symbol, the company’s stock price surged significantly. Similarly, a post congratulating Intel led to an immediate increase in its after-hours trading price.
The identities of firms subscribing to the Truth API remain unclear. Major high-frequency trading firms, including Citadel Securities and XTX Markets, did not respond to inquiries regarding their interest in the service. If just three firms opt for the $100,000 monthly fee, it could double the revenue for Trump Media, which reported earnings of $3.7 million last year.
The stock value of Truth Social’s parent company has plummeted by 75% since Trump took office, with the company continuing to report substantial losses despite increased traffic driven by Trump’s announcements on the platform. The White House press office frequently cites Trump’s posts when responding to media inquiries, with journalists sometimes advised to “wait for the Truth” if posts are not yet available.
Democratic Backlash
The launch of this service could face scrutiny if Democrats regain control of Congress. Massachusetts Senator Elizabeth Warren has vowed to investigate the service, labeling it “open corruption” and promising accountability for those involved.
As financial losses mount for Trump Media, some speculate that Trump may further utilize Truth Social for policy announcements. Craig Holman, a lobbyist for the advocacy group Public Citizen, indicated that this trend is likely to continue, stating, “Trump knows how to sell products.”
Source: www.emirates247.com
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Published on 2026-08-01 15:50:00 • By the Editorial Desk
