Trump-backed Truth Social jumps into prediction markets with Crypto.com

Truth Social, the X-like social media outlet from the Trump Media and Technology Group (ticker DJT), will host prediction markets available through an exclusive arrangement with Crypto.com.

Truth Social users will be able to trade prediction contracts related to major events, such as political elections, interest rate changes, commodity prices, major sports leagues, and more, using the new product technology called "Truth Predict." The event contracts will be offered via CDNA, with the integration providing a federally compliant way to access CDNA event contracts and make predictions on the outcomes.

"We are thrilled to become the world's first publicly traded social media platform to offer our users access to prediction markets," Devin Nunes, Chairman and CEO of Trump Media, said in a release. "...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."

Nunes highlighted the company's $3 billion in financial assets as of the end of the second quarter, and having posted its first quarter of positive operating cash flow after going public last year.

It's been quite a year for the prediction markets space, which exploded onto the public scene in the run-up to the 2024 U.S. presidential election. The two leading platforms, Kalshi and Polymarket, combined for a record-setting $1.44 billion in volume during September. Last week, Kalshi was reported to be fielding investment offers at up to $12 billion valuation shortly after a major funding round. Earlier this month, Polymarket said Intercontinental Exchange would invest up to $2 billion at a $9 billion post-money valuation.

Notably, the NHL has reached multi-year licensing agreements with both Kalshi and Polymarket. Meanwhile, the latter will serve as a clearinghouse for DraftKings' prediction market following its acquisition of Railbird.

“Prediction markets are poised to be a multi-deca-billion dollar industry," said Kris Marszalek, CEO of Crypto.com. "...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."

The integration will begin Beta testing live on Truth Social in the near future, followed by a full launch in the United States. Trump Media plans to launch the service globally.

Truth Social and Truth+ users who have Truth gems, which are earned for interacting on the platforms, will be able to convert their gems into a Cronos (CRO) token and apply them to purchases of Truth Predict contracts. Trump Media currently owns nearly 700 million CRO as part of a partnership that enables the CRO token to be integrated into the Truth Social and Truth+ platforms as part of a rewards system using Crypto.com's digital wallet infrastructure.