On Monday, economist Peter Schiff criticized President Donald Trump’s Truth Social early-access service, arguing that selling faster access to potentially market-moving presidential posts is hardly standard practice.
Peter Schiff Challenges Trump’s Truth Social Defense
Taking to X, Schiff criticized Trump Media and Technology Group Corp.’s (NASDAQ:DJT) Truth API, which provides paying customers with faster access to posts from prominent Truth Social accounts.
“Trump claims there is nothing wrong with Truth Social selling early access to his market-moving posts for $100K per month because selling early access is standard industry practice,” Schiff wrote.
“Except it is not standard for a company to be owned by POTUS, with exclusive access to his posts!”
When one user responded, “But you voted for him…,” Schiff replied, “That makes my criticism more credible.”
Truth Social Charges Wall Street Up To $100K
Trump Media launched the Truth API as a licensed, real-time feed that delivers posts from influential Truth Social accounts in milliseconds.
During the company’s second-quarter earnings call, a Trump Media executive said it has already signed more than 10 customers. These customers are mostly high-frequency trading firms, paying between $60,000 and $100,000 a month.
Trump’s account, with roughly 13 million followers, is the platform’s largest and his posts have repeatedly moved financial markets.
The service has drawn scrutiny from lawmakers, with Adam Schiff (D-Calif.) and Elizabeth Warren (D-Mass.) urging the Securities and Exchange Commission to investigate whether the arrangement could undermine market integrity.
All-In co-host Jason Calacanis has also criticized the initiative, arguing that people close to Trump are not providing sufficient pushback.
Trump Media Faces Mounting Pressure
The controversy comes as Trump Media reported a second-quarter net loss of more than $238 million, despite revenue rising 89% year over year to $1.7 million.
The firm reported a $405.9 million net loss in the first quarter, with revenue of just $871,200.
Price Action: Trump Media shares closed 8.03% lower at $9.39 on Monday. The stock was down another 0.53% to $9.34 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, DJT has positive short- and medium-term price trend ratings but a negative long-term rating.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Rokas Tenys on Shutterstock.com
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