President Trump’s Truth Social Teams Up with Crypto.com to Transform Prediction Markets

President Trump's Truth Social Partners With Crypto.com to Disrupt Prediction Markets — What To Expect

Trump Media and Technology Group, the parent company of Truth Social, has partnered with Crypto.com to introduce prediction markets on its platform. This makes Truth Social the first publicly traded social network to integrate such technology, allowing users to trade on various real-world events. The feature, named Truth Predict, aims to combine user interaction with market sentiment, providing a new avenue for users to engage with current events.

Key Takeaways

Truth Social collaborates with Crypto.com to launch prediction markets, named Truth Predict.
Users can trade on real-world events such as elections and sports outcomes through the app.
The feature will offer live price updates and operate under a federally compliant framework.
The partnership reflects Crypto.com's initiative to expand regulated financial products in digital markets.
The prediction market sector is experiencing rapid growth, with significant institutional investment being reported.

Truth Predict: A New Era for Prediction Markets

Truth Social, part of Trump Media and Technology Group, has announced an innovative partnership with Crypto.com, which will incorporate prediction markets into the platform. This move positions Truth Social as the first publicly traded social media company to adopt such technology.

Through Crypto.com’s U.S. affiliate, known as Crypto.com | Derivatives North America (CDNA), Truth Social users will be able to trade on various real-world events, covering areas like elections, economic indicators, sports results, and commodity prices.

The new feature, named Truth Predict, will integrate CDNA’s event contracts directly into the Truth Social app, providing users with access to real-time prediction markets on critical topics such as inflation, political contests, and sporting events.

Is Truth Social Set to Change the Game in Prediction Markets?

The announcement highlights that prices will update in real time, enabling users to respond quickly to unfolding events.

Devin Nunes, CEO of Trump Media, expressed enthusiasm about being the first publicly traded social media platform to offer access to prediction markets. He noted that this initiative is designed to "democratize information and empower everyday Americans," emphasizing that Truth Predict combines user engagement and market sentiment to deliver what the company calls “actionable foresight.”

Events contracts will be available via CDNA, which is a CFTC-registered exchange and clearinghouse, ensuring users in the United States operate within a federally compliant environment. This arrangement provides Truth Social access to a well-regulated prediction market framework amidst growing demand for such offerings.

Kris Marszalek, co-founder and CEO of Crypto.com, remarked that the partnership supports the company’s goal of enhancing regulated financial products within digital ecosystems, forecasting that prediction markets could evolve into a multi-deca-billion dollar industry.

Crypto.com Broadens Its U.S. Reach with This Strategic Partnership

This partnership arrives as both organizations increase their presence in the U.S. financial landscape. In September, Crypto.com received approval from the Commodity Futures Trading Commission to provide margined derivatives through its CDNA subsidiary.

Additionally, Crypto.com's U.S. branch, Crypto.com | FCM, became a registered Futures Commission Merchant, enabling it to offer leveraged derivatives to both retail and institutional clients.

Recently, Crypto.com also submitted an application to the Office of the Comptroller of the Currency to obtain a National Trust Bank Charter, which could allow the firm to gain federal recognition and expand its custody and staking services across multiple blockchains, including its native Cronos network.

Furthermore, the company has announced a partnership with Morpho, one of the largest DeFi lending protocols, to offer stablecoin lending and wrapped asset deposits on the Cronos platform.

Under the new Truth Social collaboration, users who earn “Truth gems” through engagement can convert these rewards into Cronos’ native token (CRO), which can then be used to purchase Truth Predict contracts. This follows the establishment of Trump Media Group CRO Strategy, Inc., a joint venture aimed at managing a digital asset treasury focused on CRO.

Beta testing for Truth Predict is set to commence soon, with a complete launch planned for U.S. users later this year. Trump Media indicated intentions to expand internationally once regulatory approvals are obtained.

Growth in Prediction Markets amidst Institutional Interest

This announcement comes at a time of increased activity in the global prediction market industry. Trading volumes on major platforms have surged, nearing $1 billion per week as of mid-October, according to data from Dune Analytics.

Prediction Market Growth

Polymarket and Kalshi continue to lead the way, with Polymarket accounting for about 79% of the total weekly volume, processing over $780 million in trades and boasting more than 220,000 active users as of the week ending October 20.

There has been a notable rise in institutional investment as well, with the Intercontinental Exchange, the parent company of the New York Stock Exchange, recently investing $2 billion in Polymarket, giving it a valuation of $9 billion.

In the meantime, Kalshi’s recent $300 million Series D funding round has increased its valuation to $5 billion, supported by significant venture capital backing from firms like Sequoia Capital and Andreessen Horowitz.

This escalating competition is attracting established players from both the cryptocurrency and traditional finance sectors. Recently, DraftKings, a major player in U.S. sports betting, ventured into prediction markets by acquiring the CFTC-regulated platform Railbird and designating Polymarket as its clearinghouse partner. Other up-and-coming companies, such as Limitless Exchange, have also quickly gained traction, surpassing $500 million in total trading volume after raising $10 million in seed funding this month.