Donald Trump’s Truth Social platform is set to expand its offerings by allowing users to trade based on the outcomes of elections and sports events, further extending the involvement of the Trump family in the surging prediction markets sector. The announcement from the Trump Media & Technology Group (TMTG) revealed a partnership with Crypto.com to launch “Truth Predict,” a new feature that aims to enable users to react swiftly to significant current events.
This development follows Crypto.com’s previous $11 million donation to Trump-related causes. Earlier in the year, the Securities and Exchange Commission concluded its investigation into the cryptocurrency platform, and in a further push into the financial sector, it recently applied for a U.S. bank charter.
The announcement coincided with TMTG’s multibillion-dollar deal to purchase Cronos, the cryptocurrency tokens used by Crypto.com, which resulted in a surge in their market price. Devin Nunes, head of TMTG, underscored the mission behind Truth Predict, stating, “For too long, global elites have closely controlled these markets — with Truth Predict, we’re democratising information and empowering everyday Americans to harness the wisdom of the crowd, turning free speech into actionable foresight.”
This business move aligns with recent developments involving Donald Trump Jr., who has assumed advisory roles at leading prediction market platforms, Kalshi and Polymarket. Both platforms have seen traders heavily back Trump’s bid for the 2024 presidential election, which has fostered a connection between the emerging prediction market sector and the Trump family. Additionally, Trump Jr.’s venture capital firm, 1789 Capital, has made investments in Polymarket. Recently, the Intercontinental Exchange, which owns the New York Stock Exchange, announced its plan to invest up to $2 billion in Polymarket.
During Trump’s presidency, regulatory changes eased the path for prediction markets. For example, the Commodity Futures Trading Commission (CFTC) dropped an appeal regarding the legality of election markets operated by Kalshi. In a separate instance, the CFTC and the Department of Justice concluded investigations into Polymarket for allegedly accepting illegal bets from U.S. residents. Polymarket also made headlines this summer by acquiring a new U.S. options exchange for $112 million, facilitating its re-entry into the U.S. market after previous operational restrictions.
Overall, the landscape for prediction markets appears to be improving, a sentiment supported by the Trump administration’s regulatory rollbacks. Popularity for these markets has surged, with weekly trading volumes exceeding $2 billion, as reported by analysts. However, challenges remain. Providers in the sector are still facing lawsuits in the U.S., particularly concerning whether their sports betting contracts violate state gambling laws. Recently, Crypto.com suspended some operations in Nevada due to ongoing legal challenges, highlighting the precarious landscape of this burgeoning industry.
