Trump Media Plans 1:1 Blockchain Token Rewards For Shareholders

The company plans to distribute a crypto token per share to shareholders, but the tokens do not represent shares or rights in Trump Media.

Trump Media and Technology Group, operator of US President Donald Trump’s Truth Social platform, said Wednesday it plans to roll out a blockchain token for shareholders that entitles them to perks and rewards.

The DJT token will be launched in collaboration with crypto exchange Crypto.com, and the distribution to existing shareholders set at a 1:1 ratio, or one token per share owned, according to the announcement from the company.

The token “may” include rewards and perks for DJT shareholders, including discounts on the Truth Social media platform, the Truth+ media streaming platform, and prediction market Truth Predict.

However, the token is not a tokenized stock and does not entitle holders to shareholder rights or a claim on the company’s future earnings, Trump Media confirmed to Cointelegraph.

The token showcases how blockchain technology can be paired with traditional asset classes to provide benefits to holders, but also highlights how tokenized equity products do not necessarily grant the same rights as ownership of the underlying asset.

Related: Tokenized stocks have ‘stablecoin moment’ as market cap hits $1.2B

In June, asset brokerage platform Robinhood announced the launch of tokenized stock trading for customers in the European Union.

Robinhood offered customers $5 in SpaceX and OpenAI “private equity” tokens as part of the rollout.

However, OpenAI disavowed the tokens almost immediately, warning prospective holders that they did not represent a private equity stake in the company nor entitle holders to any shareholder rights.

Source: CoinTelegraph