Trump's social media platform Truth Social's parent company goes public through a reverse merger, surging 58% at one point during trading.

Former U.S. President Donald Trump's media company, Trump Media & Technology Group (TMTG), went public through a reverse merger and started trading on the Nasdaq exchange under the symbol "DJT" on March 26th. During trading, it reached a peak of $79.38, marking a surge of over 58%.

Recently, IPOs have been hot, with Reddit's stock price soaring rapidly after going public, allowing early whitelist users to make millions of dollars.

Trump's Truth Social Platform Goes Public

Former U.S. President Donald Trump's social media platform, Truth Social, launched its parent company, Trump Media & Technology Group (TMTG), on the Nasdaq under the ticker symbol "DJT" following its merger with the special purpose acquisition company DWAC. The stock started trading on Tuesday, 3/26, reaching a high of $79.38, a surge of over 58%, with a current market value of $1.86 billion.

After being banned from major social media apps like Facebook and Twitter following the Capitol Hill riots in January 2021, Trump founded Truth Social. Trump holds at least 58% of the company's shares. However, under current regulations, Trump cannot sell his stocks within six months, which may hinder his ability to raise cash to pay a $175 million fraud fine.

Trump: From Meme Coins to Meme Stocks?

According to a report by CNN, Trump Media generated only $3.4 million in revenue in the first nine months of last year. The company's main asset, Truth Social, has fewer than 500,000 monthly active users, significantly lower than platforms like Facebook, Twitter, or TikTok. Moreover, Truth Social experiences higher user churn rates compared to larger platforms, with users leaving at a faster pace.

Interestingly, Trump's former casino company also had the stock symbol DJT, listed on the New York Stock Exchange from 1995 to 2004 before going bankrupt and delisted, marking the third bankruptcy out of Trump's four corporate failures.

However, these factors have not halted the rise of DJT stock. Some even compare it to so-called "meme stocks" like GameStop and AMC, which saw surges driven by retail investors pouring in substantial funds, causing the stock prices to detach from the companies' fundamentals.

On the other hand, the meme coin MAGA, launched on August 11 last year, which stands for "Make America Great Again," Trump's political slogan, did not follow the same upward trend. MAGA dropped by 2.6% yesterday, currently priced at $5.09, with a total market value of $237 million.

With Trump leading in polls for the 2024 elections against Biden, does the Republican Trump administration remain "crypto-friendly"?