Trump Media CEO defends Truth API amid trading scrutiny

Trump Media & Technology Group’s interim CEO, Kevin McGurn, reported that sign-ups for the company’s Truth API service have grown to the mid-teens. Launched on August 1, the service provides high-frequency trading firms and other subscribers with early access to posts from the ten most-followed accounts on Truth Social, including Donald Trump.

The service costs between $60,000 and $100,000 per month. McGurn defended the product on CNBC, stating that demand is driven by the market and comparing it to standard industry practices used by other social platforms to feed news outlets and trading firms.

The API has faced significant scrutiny and legal challenges. Critics and organizations such as the Intercept Media and the Freedom of the Press Foundation have filed lawsuits, alleging the service provides an unfair advantage. Additionally, lawmakers including Senators Elizabeth Warren and Adam Schiff have called on the Securities and Exchange Commission to investigate whether the arrangement violates securities laws, given that Trump’s posts can influence financial markets.

In its second quarter, Trump Media reported revenue of $1.67 million and a net loss of $238.1 million, largely attributed to cryptocurrency holdings.