Trump Media and Technology Group's (NASDAQ: DJT) shares surged on Tuesday following the company's announcement that it has partnered with Crypto.com to launch its Truth Social platform into the prediction markets space.
The social media business stated that it will be the first of its kind to incorporate an event contracts offering directly into its platform, but it did not reveal the financial terms of the deal. The Commodities Futures Trading Commission (CFTC)-registered Crypto.com Derivatives North America (CDNA) will provide the event contracts that show up on Truth Social.
“The integration will begin Beta testing live on Truth Social in the near future, followed by a full launch in the United States. Subsequently, Trump Media plans to launch the service globally once all the requisite requirements are met,” according to a press release.
Given President Trump's attempts to relax US cryptocurrency regulations, his family's connections to the sector, and Crypto.com's well-established presence in the market, it may come as no surprise that digital currency is involved with Truth Predict, the name of the social media company's prediction markets product. According to the business, users of Truth Social and Truth+ who have Truth gems—rewards for using the platforms—can exchange their gems for Cronos, a cryptocurrency, and use those tokens to buy event contracts.
Crypto.com and Truth Social aren't holding back when it comes to yes/no bets associated with sporting events, even if prediction markets that offer contracts for sporting events are becoming more and more contentious. These contracts are being accepted by both businesses.
“The event contracts will be offered via CDNA, with the integration providing a federally compliant way to access CDNA event contracts and make predictions on the outcomes of events, including politics, economics, financials, and sports – all seamlessly woven with technology from Truth Social,” according to the statement.
The press release's reference to "all major sports leagues" suggests that Truth Social may offer a wide range of sports-related services. This information comes just days after Crypto.com decided to cease offering contracts for sporting events in Nevada while the state and company's legal dispute is being resolved.
When Crypto.com entered the sporting event contract market in December of last year, it was among the first businesses to do so. With an eye toward the NFL playoffs and the Super Bowl, the company quickly broadened its range of services. Although that turnover is still swamped by authorized sports betting, several analysts of the gaming and prediction markets industries now estimate that sports derivatives account for enormous percentages of the business on the exchanges.
Donald Trump Jr. will be more involved in prediction markets as a result of the news of the Crypto.com/Truth Social partnership. The Trump Media and Technology Group, located in Florida, has the president's eldest son on its board.
One of the biggest prediction market operators, Polymarket, received an investment from Trump Jr.'s 1789 Capital in August. That was a wise decision because the company has subsequently been valued at up to $10 billion, and there are reports that it may soon secure further funding at a valuation of up to $15 billion.
The two biggest prediction market companies, Kalshi and Polymarket, both have Trump Jr. as an advisor.
