Trump Media and Technology Group (NASDAQ: DJT) alongside Crypto.com has decided to retract a proposal that would have positioned Trump’s Truth Social as the first social media platform to implement prediction markets directly.
This decision marks a significant shift in the dynamics between the media company associated with the former president and the cryptocurrency exchange. Both Crypto.com and Trump Media are also abandoning the establishment of a digital asset treasury (DAT) firm that was intended to invest billions in CRO, a cryptocurrency designed for utilization on the Cronos blockchain.
“CRO serves as the primary cryptocurrency in the Cronos ecosystem, which encompasses Cronos EVM, Cronos POS, and Cronos zkEVM. These networks are designed to facilitate decentralized finance (DeFi), gaming, and the overall Web3 landscape,” stated Crypto.com.
A DAT is a publicly listed entity whose main role is to acquire, trade, and manage digital currency assets. The president’s sons, Don Jr. and Eric, currently oversee American Bitcoin Corp. (NASDAQ: ABTC), a Bitcoin DAT whose stock has dropped by nearly 75% this year.
Truth Social’s Prediction Market Initiative Suspended
In October of last year, Crypto.com and Trump Media revealed plans to introduce event contracts from the prediction market operator directly on the Truth Social platform.
At that point, Trump Media indicated that beta testing would commence shortly, with a view towards a nationwide rollout for users of Truth Social. This initiative was branded as Truth Predict, including sports derivatives which contribute significantly to volume on yes/no trading platforms.
Upon announcing their collaboration with Crypto.com, Trump Media expressed that users of Truth Social and Truth+ who had earned Truth gems—a digital reward for engagement on the platform—would be able to exchange these gems for Cronos and utilize that cryptocurrency for trading event contracts.
Unfortunately, these plans fizzled out. Neither company addressed the reasons behind the cessation of the prediction market agreement, but Trump Media’s first earnings conference call is scheduled for Monday, possibly shedding more light on the termination of the partnership with Crypto.com.
Crypto.com Is Positioned to Thrive
In terms of prediction markets, Crypto.com is well-equipped to absorb the loss of the Truth Social partnership, as it has established multiple prominent and potentially more profitable prediction market collaborations.
These include associations with Fanatics and FanDuel, along with current speculation that Robinhood Markets (NASDAQ: HOOD) might be contemplating a partnership with Crypto.com in the prediction market domain.
Additionally, Crypto.com has its own consumer-focused prediction market platform, known as OG, which launched earlier this year.