Truth Predict will offer event contracts on markets such as political elections, inflation rate changes, and events across all major sports leagues
In potentially bad news for states looking to combat the growth of sports prediction markets, Trump Media has partnered with Crypto.com to launch prediction markets on Truth Social.
The integration with CFTC-registered Crypto.com Derivatives North America (CDNA) will enable users of the social media platform to trade prediction contracts related to events such as political elections, interest and inflation rate changes, commodity prices on gold and crude oil, and events across all major sports leagues.
Trump Media announced the move on Tuesday and expects to begin beta testing in the near future.
Truth Predict will initially be available in the United States, although the company aims to launch the service globally once all the requisite requirements are met.
“We are thrilled to become the world’s first publicly traded social media platform to offer our users access to prediction markets,” said Devin Nunes, chairman and CEO of Trump Media. “Truth Predict will allow our loyal users to engage in prediction markets with a trusted network while harnessing our social media platform to provide totally unique ways for users to discuss and compare their predictions.
“For too long, global elites have closely controlled these markets – with Truth Predict, we’re democratizing information and empowering everyday Americans to harness the wisdom of the crowd, turning free speech into actionable foresight.”
Truth Predict will be tied into Truth gems, which are earned for interacting on the Truth Social and Truth+ platforms. Users of those platforms will be able to convert their gems into Cronos (CRO), Crypto.com’s digital currency, and apply them to purchases of Truth Predict contracts.
“Prediction markets are poised to be a multi-deca-billion dollar industry,” said Kris Marszalek, co-founder and CEO of Crypto.com. “Crypto.com has quickly become one of the most trusted providers of prediction market services, and we’re thrilled to combine with Truth Social to support the world’s first prediction markets available from a social media platform.
“This aligns perfectly with what users look for in social media – a community to engage with and seek truth. Truth Predict will provide customers with a powerful tool related to market sentiment on an unlimited number of events. We are thrilled to integrate Truth Social’s truly pioneering social media platform and technology with our industry-leading technology and regulated prediction market trading.”
Trump Media’s launch of prediction markets comes as a number of gaming states take legal action to prevent prediction markets from offering sports event contracts.
The States and the American Gaming Association (AGA) argue that sports event contracts are considered gambling under state gambling laws and should be subject to state licensure.
Following last week’s partnership deal between the National Hockey League and prediction markets platforms Kalshi and Polymarket, AGA chief executive Bill Miller said major sports leagues “risk misleading fans into thinking these platforms offer the same protections and legal clarity as licensed sportsbooks. They do not. In fact, the legal status of these platforms under federal law is far from settled”.
He added that the Commodity Futures Trading Commission (CFTC) is yet to fully review the contracts offered by providers such as Kalshi and Polymarket, and that there are questions about whether they comply with the prohibitions on gaming under the Commodity Exchange Act.
On Monday Kalshi filed a complaint in New York District Court against the New York State Gaming Commission, accusing the regulator of impinging on the federal government’s exclusive authority to regulate derivatives trading through the CFTC.
Kalshi’s legal move was in response to a cease and desist letter sent last week by the New York gambling regulator, which threatened the company with civil penalties and fines for allegedly breaching state gambling laws.
Shares in Trump Media and Technology Group Corp (NASDAQ:DJT) were trading 1.75 per cent higher at $16.31 per share in New York Tuesday.