Trump Media Explores New Utility Token for Truth Social: Innovation or Revenue Play?

Trump Media & Technology Group (TMTG), the parent company of Truth Social, has revealed plans to explore a utility token and digital wallet for its ecosystem, according to a shareholder letter dated April 29, 2025. The proposed token would initially serve as a payment method for Truth+ streaming subscriptions, with potential expansion to other services within the Truth Social network. The announcement positions the token as a rewards mechanism to enhance user engagement, but it also raises questions about whether this is a genuine step toward utility or another financial maneuver by a company tied to U.S. President Donald Trump.

What Does the Token Offer?

The utility token concept is not new in the crypto space. Platforms like Binance and Ethereum have long used native tokens (BNB and ETH, respectively) to power transactions and incentivize participation. TMTG’s letter suggests a similar intent, framing the token as a tool to drive activity on Truth+ and potentially Truth.Fi, its fintech arm launched earlier in 2025. “We're exploring the introduction of a utility token within a Truth digital wallet that can initially be used to pay for Truth+ subscription costs, and later be applied to other products and services in the Truth ecosphere”, stated in the letter. If implemented, this could provide practical value to users, such as discounted access or governance rights, aligning with industry norms for utility tokens.

However, Trump Media’s proposal has fueled more speculations that the Truth Social token might prioritize team’s revenue over real utility. Skeptics argue that the necessity and demand for a new utility token are questionable, given Truth Social’s relatively niche ecosystem compared to giants like Binance. Truth Social, with an estimated 30.5 million visits with a 60th rank in News & Media Publishers in U.S. in March 2025 according to data from Similarweb, alongside Truth+ and Truth.Fi, lacks the scale and transaction volume that typically justify a dedicated token. Moreover, the use cases outlined in the letter—such as subscription payments—could easily be handled by existing tokens like stablecoins (e.g., USD1) or even the $TRUMP memecoin, which already carries Trump’s brand appeal. Developing a new token offers little apparent added value to users, raising doubts about its practical purpose beyond generating hype or additional revenue streams for TMTG.

Companies majority-owned by Trump, including TMTG, the World Liberty Financial (WLFI) DeFi project and the $TRUMP memecoin, have been criticized for leveraging Trump’ brand across crypto ventures to make profits unjustly for a long time. WLFI, launched in October 2024, raised $550 million through token sales but faced criticism for its non-transferable $WLFI token and opaque revenue distribution—75% of which benefits Trump-affiliated entities. The $TRUMP memecoin, introduced days before Trump’s January 2025 inauguration, soared to a $8.8 billion market cap, fueled by hype and exclusive dinner offers for top holders, yet drew accusations of insider profiteering and ethical conflicts. As reported earlier, the team behind TRUMP was suspected to have moved $1.346 million to exchanges in the market fervor. The dinner promotion has drawn scrutiny as Senators Elizabeth Warren and Adam Schiff addressed a letter to the Office of Government Ethics (OGE), flagging potential conflicts of interest tied to Trump’s $TRUMP venture.

Market Reaction and Token Price Impact

Market reactions provide some insight. Following the announcement, the $TRUMP memecoin dropped 6.6% to $13.13 in the past 24 hours, suggesting investor uncertainty about overlapping token initiatives and risk of potential scrutiny.

The debate hinges on design of the utility token. A well-designed token could enhance Truth Social’s ecosystem, offering users practical benefits and aligning with TMTG’s stated goals. Yet, the precedent set by WLFI and $TRUMP suggests a pattern where financial upside for Trump and his affiliates often overshadows user utility. Without clear details, it’s premature to label this a “cash grab,” but the possibility lingers given past criticisms of self-enrichment. As TMTG refines its plans, the crypto community will watch closely to see if this token prioritizes function or follows a familiar profit-driven playbook.