Social media platform is like phantom stocks. They appear substantial, but their value is elusive.
How Phantom Stock Works:
Phantom shares mimic real stock value.
Pump & Dump Scheme: A fraudulent practice where individuals artificially inflate the price of a stock (or in this case, social media company) to attract unsuspecting or criminal/dark money investors who “pump” stock prices, the inflated worth is illusory.
Money Laundering: Trump concealing the origins of illicitly obtained funds by passing them through a complex sequence of banking transfers or commercial transactions.
Truth Social is a failed social media platform, that will merge with a publicly traded SHELL company. Financial Performance: Since its 2021 launch, Truth Social generated sales of less than $5 million. However, Trump’s supporters rallied to boost shares in the shell company, Digital World Acquisition Corp. Its a money laundering scheme.
"It’s clear major media will do nothing investigation to determine if a given Trump lender has ulterior motives that could reflect a purchase of future U.S. foreign policy. So any lender could suddenly decide the stock position Trump is about to have is sufficient pretext to lend to him, even though Neil Pedersen of Peterson & Sons—an insurance industry expert—told MSNBC that in the normal course of business a lender would want liquid collateral and someone with a net worth in the tens of billions.
Keep in mind that the Truth Social stock price is artificially inflated to a spectacular degree. The platform is collapsing; everyone knows that Trump spent the last 2 years trying to dump it; and who wants to be involved in a company whose 58.1% owner is a rapist facing 88 felony charges in four jurisdictions and both personal & professional bankruptcy?
Which brings me to the other possible solve for Trump: if this stock truly becomes a “meme stock”—a joke for incels—the price could rise."
continued ... (UPDATE) "Business Insider reports that a group made up of some of Trump’s closest allies—Devin Nunes, Kash Patel, Linda McMahon; his own sons—could alter the merger agreement, with a simple vote, to allow Trump to liquidate his stock position in Truth Social before 6 months. BI doesn’t say how quickly Trump would then be able to do so, though it sure sounds like yet another reason the stock price should drop through the floor. Who would want to be in any way involved with this stock right now?
In Trump’s life of wishful thinking—what he learned in the cult he and his family were in when he was a kid, which is that you can manifest anything just by pretending it already exists—has now run into the unshatterable rock of reality. He assumed that somehow he’d be able to wriggle out of this, but it does seem that the only options left for him to do so are those that involve some sort of grift or criminality. So his hope must now be that media would ignore it."
Truth Social/ DJT’ stock has all the earmarks of a pump and dump scheme and a stock swindle where the only people who will benefit in the long run will be insiders. Ie: Donald Trump and his cronies.
The financials of Truth Social are horrible. It is losing $5 million plus each quarter on revenue of less than $1 million a quarter.Truth Social is essentially a MAGA message board.
So why are people driving the stock price up? To be able to funnel dark and foreign money to Trump to use in his campaign without having to disclose the source of the investors. Campaign contributions have to be disclosed to the #FEC, but that can be avoided by buying Truth Social stock.
The stock is pumped up and Trump cashes in his shares. The SEC should take a very close look at this Trump pump and dump scheme.
"Let us be very clear: according to industry experts, any cosigner for this loan would need to have a net worth of between $75 and $100 billion.
Not $75 and $100 million. $75 and $100 billion.
There are five or six Americans who meet that standard. Donald Trump himself has a negative net worth.
So the idea that any amount of money Trump gets from Truth Social would be enough to both purchase the bond and put up sufficient collateral for it is literal nonsense. A fantasy.
WHAT corrupt businessperson—and will it be a foreign national?—buys $3 billion of worthless meme stock from Trump as part of an obvious fire sale. And how much of a discount does the buyer seek?
If Trump were willing to accept $500 million for meme stock allegedly worth $3 billion, he could get away with it, I’m sure. But he will insist on full face value by stock price.
But if some dodgy figure pays him billions for obviously worthless paper assets"
Truth Social has 620,000 monthly users, but it's supposedly worth 5 billion (so Trump's share is 3.3 billion).
It's absurd.
This is being done to get Trump money so he'll protect Tiktok.
The biggest institutional investor in the SPAC that’s merging with Truth Social is Susquehanna International Group LLP, which was co-founded by GOP megadonor Jeffrey Yass. The deal is poised to give Donald Trump a massive financial lifeline.
Out of 600k users, how many are real vice bots/trolls? There might be 200k users or less. It is a 💯% scam. Simply a means to launder money to the criminal defendant.
@skykiss if they are creating bogus revenue and usage numbers that’s also called fraud. If they did it as part of either their IPO or thus merger it’s securities fraud.
Greedy, Pro-fascist Yass looks to by meme stock of a failed social media platform to prop up the biggest criminal in American history.
The SPAC (Special Purpose Acquisition Company) about to merge with Trump Media to create Trump Media & Technology Group, Digital World Acquisition Corporation (thus potentially bringing Trump a $3 billion windfall just when he desperately needs such an infusion of cash) is significantly funded by a right-wing Trump mega-donor, Jeff Yass, who co-owns Chinese company ByteDance, is openly attempting to game the 2024 U.S. presidential election for himself, and has been talking with Trump a lot.
Recently, he has given the GOP group another $5.5 million.
@GatekeepKen@skykiss The SPAC that is "merging" in Truth Social is based in Wuhan, China. The Chinese can very easily pump this long enough for it to launder a huge payout to Trump.
An #SEC Investigation originate from various wronged investors or alerts from market professionals, whistleblowers, Suspicious Activity Reports (SARs) filed by financial institutions, or Red flags detected in market trading data.
Since this financial pump & dump scheme is method or tool that Yass, China & other pro-fascist are using to funnel money to the criminal - then they are going to take the loss because this is how they are getting the $$$ to Donald. Only Donald and his cronies are enriched. It's an anonymous campaign donation!
The #SEC should shut it down because it makes our financial markets a vehicle for criminals.
@skykiss The new order out from Engoron yesterday specified all efforts to obtain & accept a surety from any source must pass thru the desk & get the approval of the monitor. Trump already moved $50 mil w/o permission on Jone's watch. I have some concern that she, alone, is not up to the task or reigning Trump et al into compliance with the Order. I really wish there was a "committee" of 3-5 people made up of attorneys, former judges & financial experts for control & less chance for corruption
@skykiss
Reading the options chains there's still at lot of open interest in puts on DJT, even the ones with a delta that indicate like a 1% probability of payout.
My guess is that GS is in this on the way up snd the way down.
The SPAC merger with a worthless, debt ridden maga message board company is simply a way for donors to funnel money to Donald without scrutiny. #SEC @skykiss @suntour
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