What is Truth Social?

Former U.S. President Donald Trump‘s social media platform, Truth Social, is expected to begin trading on the NASDAQ stock exchange soon, pending a shareholder vote on its merger with Digital World Acquisition Corp. (DWAC), a special-purpose acquisition company (SPAC). This move could reshape the financial structure of Trump Media & Technology Group (TMTG), which owns Truth Social.

Introduction: The Origins of Truth Social

After Donald Trump was banned from major social media platforms like Facebook and Twitter (now called X) following the January 6, 2021, U.S. Capitol attack, he sought to create his own platform. Before launching Truth Social, he briefly experimented with a personal blog, “From the Desk of Donald J. Trump,” which failed to gain traction.

Truth Social officially launched in the Apple App Store in February 2022, initially facing glitches but quickly topping the list of most downloaded free apps. The platform was designed to provide a free speech alternative to mainstream social media platforms, attracting conservative users and supporters of Trump’s MAGA movement.

Truth Social’s Features and Functionality

User Experience and Design

Truth Social closely resembles X (formerly Twitter) in terms of layout and functionality. Users can:

• Create profiles
• Post “Truths” (analogous to tweets)
• Re-truth (similar to retweets)
• Send direct messages
• Browse a For You section with recommended posts
• View content in a purple-themed interface

Sign-Up Process and Restrictions

Signing up requires users to provide an email address and phone number, with mandatory text message verification. Unlike Facebook, X, and Instagram, Truth Social restricts access to users aged 18 and above. However, the platform does not verify age, making it relatively easy for underage users to bypass this requirement.

User Base and Market Position

Truth Social has struggled to expand its audience beyond a conservative echo chamber, similar to platforms like Parler and Gettr. The company does not publicly disclose user numbers, but research firm Similarweb estimates about 5 million active users as of February 2024.

In comparison:

• Facebook has over 3 billion users
• TikTok has over 2 billion users
• X (formerly Twitter) has over 550 million monthly active users

Trump himself has fewer than 7 million followers on Truth Social, compared to 87 million on X, limiting his overall reach.

Challenges in Competing with Mainstream Platforms

Limited Network Effect

Social media platforms thrive on network effects, meaning their value increases with user growth. Given that major Republican politicians and conservative influencers continue to engage their audiences on platforms like Facebook, X, and YouTube, they see little incentive to migrate to Truth Social.

Content Moderation and Free Speech Debate

Truth Social markets itself as a free speech platform, yet it has faced criticism for banning users who:

• Criticize Trump or his allies
• Discuss the January 6th investigation
• Use parody or satirical accounts

At the same time, Truth Social has a looser approach to content moderation, leading to concerns over hate speech and extremism.

Financial and Business Prospects

Stock Market Listing and Shareholder Vote

If the merger with DWAC is approved, Trump Media & Technology Group (TMTG) will become a publicly traded company, making it accountable to shareholders and the SEC. This will require quarterly financial reporting and could lead to increased scrutiny.

Revenue and Growth Strategy

Unlike Facebook and X, which rely on advertising and subscription models, Truth Social has not publicly disclosed its revenue generation strategy. The platform faces challenges such as:

• Attracting mainstream advertisers who are wary of controversial content
• Growing its user base beyond a niche audience
• Ensuring long-term financial sustainability

Comparison with Other Conservative Social Media Platforms

Truth Social is often compared to other right-leaning social media networks, including:

Trump’s Posting Agreement and Potential Strategy Shift

Trump is contractually bound to post on Truth Social six hours before posting the same content elsewhere. However, this exclusivity agreement expires in February 2025, raising speculation that he might re-engage with X or Facebook to broaden his reach during the 2024 U.S. Presidential election campaign.

Summary of the News