US President Donald Trump's posts on his Truth Social platform can move markets with a few keystrokes. Starting Saturday, for a fee of $100,000 a month, Wall Street traders can access his "Truth API" service to have high-speed access to the president's announcements about economic policy and global affairs.
US President Donald Trump knows the world hangs on his every word. Now he wants you to pay for it.
The social media posts of the world's most powerful man are going on sale Saturday when his Truth Social business begins offering sneak peeks of them to Wall Street traders willing to pay up. The move raises the prospect of big profits for Trump's company and big questions about insider trading and using public office for private gain.
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Similar fast speed feeds are sold by other social media firms and media providers, but Truth Social doesn't just distribute the news, it makes it, regularly rattling markets as Trump posts policy changes on everything from war to central bank leadership to tariffs.
“If this was the CEO a public company, this would be jail time," said Irene Aldridge, head of Able Alpha Trading, which doesn't plan to buy the service. “We have a president of the United States who has the front seat to all the action, who makes all the decisions, and he's disclosing this ahead of time to a select group.”
Asked about the propriety of the new service and whether White House lawyers had vetted it, Trump’s press office declined to comment, referring questions to Truth Social’s publicly traded parent. That company, Trump Media & Technology, issued a statement blasting Democratic critics for mischaracterising the service “out of ideological opposition to free markets or a failure to grasp the distinction between public and nonpublic information – or, quite possibly, both”.
A prolific poster, Trump has sent stocks, bonds and currencies soaring and plunging with his online musings and threats. That presents opportunities for so-called high frequency traders that specialise in buying and selling within milliseconds, exploiting tiny, fleeting difference in prices.
Just this month, Trump threatened on Truth Social to slap higher tariffs on Canada, kill a nuclear deal with Saudi Arabia and widen the Iran war. With advanced knowledge, traders betting on a plunge in the Canadian dollar, a drop in nuclear energy stocks and a jump in oil futures could have raked in big profits.
“For the big guys, it’s going to be something they need,” said Joe Saluzzi, co-founder of Themis Trading, who estimates about 100 of high frequency firms might be willing to pay for the service. “It’s market-moving information.”
Dubbed Truth API, the service comes as these firms are spending more on feeds and servers that bypass slower internet connections with direct lines to news and data sources. The chance for profits is greater than ever thanks artificial intelligence’s ability to read posts and articles more accurately for market-making changes and Trump’s penchant for making news online.
Traders profit when prices jump up and down, and with his taste for cliffhangers, threats and policy reversals America's first reality-TV president provides plenty of potentially market-moving content.
The reversals are especially profitable, allowing traders to win both ways – jumping ahead of stocks moving up or down to a post threatening something, then cashing out within thousands of a second, then betting the other way.
In addition to Trump, the service will include posts from other “high ranking” Truth Social contributors, including possibly his two oldest sons, Donald Jr. and Eric, who along with the father are heavily followed by users.
Truth Social has said that the information will be released to the traders and the general public at the same time so there really isn't an issue of fairness. But Themis Trading's Saluzzi, a critic of high speed trading, says that's a red herring because when the posts are received, not when they are released, is what matters.
“Somebody who buys the info and has a system built to process it will be able to act quicker than you and me,” said Saluzzi, adding in reference to everyday, small stock buyers that “the loser is always the retail investor".
Aside from policy scoops, another reason to sign up has emerged in recent months: Trump is posting more about publicly traded companies, praising ones he likes in a way that sets off buying frenzies.
“The pimping of specific companies – obviously Wall Street would like to know that before other people,” said Dylan Hedler-Gaudette, a federal ethics rule expert at the watchdog Project on Government Oversight. “It's a real mess.”
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In April, moments after Trump praised Palantir Technologies in a post that included its stock symbol, the price briefly jumped the most it had in an entire year. Later that month, Trump posted, “Congratulations on Intel doing such a great job,” and the stock immediately jumped in after-hours trading.
Just which firms are signing up for the feed is unclear. Asked for comment, none of the half dozen most well known high-speed traders such as Citadel Securities and XTX Markets replied. If just three sign up for the $100,000 a month fee, that would double revenue at Trump Media, which reported taking in $3.7 million last year.
The company can use their business.
Stock in the Truth Social parent has plunged 75 percent since Trump took office last year as the company keeps reporting hundreds of millions in losses despite the president's help driving traffic to its site by posting major decisions there.
In fact, the president breaks news on Truth Social so often that the White House press office will copy his posts into an email when responding to questions from the media seeking details on policies. If his posts aren’t available yet, journalists are sometimes told, “Wait for the Truth.”
Another problem for Truth Social is looming if the Democrats take control of Congress and launch investigations, as vowed by Massachusetts Senator Elizabeth Warren in a statement Friday specifically attacking the new service: “We will haul in those responsible for this open corruption to answer to the American people.”
If the losses keep mounting for the company, though, some predict the president will push things further, using the platform even more for policy announcements.
“That’s absolutely going to happen,” warns Craig Holman, a lobbyist for the good government group Public Citizen. “Trump knows how to sell products.”
(FRANCE 24 with AP)
