Trump Media cancels predictive markets plans with Crypto.com

Trump Media and Crypto.com have decided not to continue their partnership, abandoning the integration of predictive markets into Truth Social. Additionally, Trump Media has canceled an agreement to purchase billions of dollars in Cronos (CRO) tokens. "After analyzing these ETFs and DAT from all angles, we concluded that proceeding under the current market conditions doesn’t make sense," stated Kris Marszalek, CEO of Crypto.com, to Bloomberg. "We will continue seeking other ETF opportunities. Regarding the CRO committed to the DAT, we will find a better way to allocate these resources to drive revenue, increase demand, and grow the value of the ecosystem."

Cancellation of Truth Predict

Trump Media had previously canceled plans to launch an independent predictive market platform, Truth Predict, as part of the partnership with Crypto.com. Devin Nunes, former Chairman and CEO of Trump Media, had enthusiastically announced this project last year. However, after his departure in April and the arrival of interim CEO Kevin McGurn, the plans were significantly scaled back. Ultimately, the direct integration of Crypto.com markets into Truth Social was dismissed.

Truth API for market traders

As an alternative, Trump Media recently launched a Truth API to provide early access to posts on Truth Social for market operators. "Markets already react to posts on Truth Social," said McGurn. Posts by the President, who is the most-followed user on the platform, can have a substantial impact on predictive markets. The API allows operators to receive early notifications, offering them an advantage by handling information before the markets react.

The beginning of this month marked the launch of the API, designed primarily for organizations affected by the cost of informational delays. Regarding this, it was reported that Gabriel Perez, the President’s prompter, had used insider information to trade in the markets. The White House reported that he has left his position amid an ongoing investigation.

Possible collaboration with Kalshi or Polymarket

Despite virtually closing the deal with Crypto.com, Trump Media is considering alliances with other platforms such as Kalshi and Polymarket, which have ties to the Trump family. Donald Trump Jr. has become a strategic advisor to Kalshi and Polymarket through his firm 1789 Capital and is also part of the board of Trump Media, managing 41% of his father's shares through a trust.

These actions suggest potential future collaborations with these platforms, opening new opportunities in the predictive markets sector.