DJT shares rose about 3% in premarket trading after a digital asset update from Trump Media & Technology Group Corp. The company outlined plans to distribute digital tokens to shareholders. The disclosure placed blockchain activity at the center of its latest corporate move.
Trump Media Details Token Partnership, Allocation, and Limits
According to a recent press release, the token program will be conducted in conjunction with Crypto.com. Distribution of the coin will take place on Cronos blockchain technology. The company said the choice was made due to speed and interoperability.
The company plans to airdrop non-transferable digital tokens to eligible shareholders. The platform expects each ultimate beneficial owner holding whole DJT shares to receive one digital token per share. The company will use record dates to determine eligibility. It has not yet announced those dates.
The platfom said it would be possible for token holders to receive occasional rewards. Those could involve incentives or discounts for Trump Media platforms. Next up in the Trump universe are Truth Social, Truth+ and Truth Predict.
Bitcoin treasury firm Trump Media emphasized the tokens will not function as securities. The token does not represent ownership, profit sharing, or value tied to managerial efforts. The company also said that the tokens may not be transferable and would be non-redeemable for cash.
Token Plan Fits Broader Push Into Digital Assets and ETFs
However, the company will also have full control of the initiative. The company added that it may amend, suspend or terminate the distribution at any time.
Trump Media spans the social media, streaming and financial technology sectors. The token project integrates a cryptocurrency to its network as well. Now investors are waiting for more detail around execution and timing.
The token rollout is part of company’s larger move into digital assets and financial markets. The move is in line with the company’s mission to expand presence over blockchain and contactual finance. Trump Media, alongside Yorkville America, has launched five Truth Social ETFs on the NYSE. The funds invest in U.S. defense, innovation, energy security, real estate and consumer brands.
Source: https://coingape.com/trump-media-to-distribute-digital-tokens-djt-stock-rises/
