Trump media firm to issue new cryptocurrency to shareholders

Key Highlights

• It hinted at "various rewards" for token holders, such as discounts on Trump Media products. Trump Media, which was founded in 2021, has recently broadened its push into the crypto industry, while also expanding into artificial intelligence and financial services.
• But its shares have fallen more than 60% this year. Since returning to the White House in January, Trump has pushed for more favorable regulation of cryptocurrencies, as well as trading platforms and other parts of the industry.
• The once-fringe industry poured millions into the 2024 presidential election, backing candidates including Trump. Critics have expressed concerns about possible conflicts of interest arising from the various crypto ventures Trump, who once called crypto a scam, and his family members have launched.
• Those ventures - such as the TRUMP meme-coin and a token from World Liberty Financial, a Trump-backed finance project - have generated significant profits.
• In the summer, Trump signed the country's first major national crypto legislation, which was widely seen as a step toward legitimising the sector and integrating crypto into the financial mainstream. His administration has also dropped several enforcement cases against crypto businesses and has pushed to make it easier for Americans to use retirement savings to invest in non-traditional assets like cryptocurrencies. Still, despite a crypto-friendly White House, investors have pulled back from crypto this year as they move away from assets seen as volatile. Bitcoin, the world's largest cryptocurrency, is poised to post an annual loss, after a sharp decline from its record highs in October. Some of Trump's crypto bets have also faltered.