Former President Donald Trump has hyped up Truth Social as "amazing" and "very solid."
“All of the competitors to TRUTH SOCIAL, especially those in the Radical Left Democrats Party who are failing at every level, like to use their vaunted ‘disinformation machine’ to try and convince people, and it is not easy to do, that TRUTH is not such a big deal and doesn’t ‘get the word out’ as well as various others, which they know to be false,” Trump thundered in a post on the site. "I THINK TRUTH IS AMAZING!"
But could Trump's rah-rah-rah efforts of the platform, that launched back in 2022 after he was banned from Twitter, be violating Securities and Exchange Commission rules?
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Conservative attorney and Trump critic George Conway appeared to cite the precise rule, "Employment of manipulative and deceptive devices" that Trump may be breaking.
"Um, but see 17 C.F.R. § 240.10b-5," he tweeted.
In it, the language suggests it's unlawful to "make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading..."
He was replying to another post kicking the SEC violation can around: "As Truth Social stock continues to tank, Donald Trump took to the website to try to let everyone know how amazing it is, in what could be an effort to try to pump the stock."
The return to his pitchman roots to pep up the fledgling Twitter copycat platform's parent company Trump Media & Technology Group (TMTG) — comes after it suffered a nearly $4 billion hit since last week's money monsoon.
TMTG's Nasdaq debut took off soon after it began started trading — fetching over $79.38 a share on March 26. It then started freefalling.
As of Thursday's close it's down to $46.15.
Still, Trump attempted to show off Truth Social's bright spots, claiming the platform was flush with more than $200 million liquid.
"First of all, it is very solid, having over $200,000,000 in CASH and ZERO DEBT," his post reads. "More importantly, it is the primary way I get the word out and, for better or worse, people want to hear what I have to say, perhaps, according to experts, more than anyone else in the World."”
Nonetheless, the company acknowledged in Monday’s filings that it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”
