Trump's Posts Can Be 'Previewed' Too: High-Frequency Traders Buy Truth API for $100,000 Monthly

Trump Media & Technology Group is attempting to generate new revenue through a controversial service that sells priority data access to its social platform, Truth Social, for up to $100,000 per month. The main selling point is that high-frequency traders can receive President Trump’s posts several milliseconds before regular users, allowing them to gain a strategic advantage in financial trading.

Kevin McGurn, CEO of Trump Media, told investors that more than 10 clients have already signed contracts for the Truth API (Application Programming Interface) service. Most clients are high-frequency securities trading firms, with monthly contracts typically ranging from $60,000 to $100,000.

In addition to Trump’s posts, the API also covers content from other top-tier accounts on Truth Social.

McGurn said the company is actively negotiating with major cloud computing companies, artificial intelligence (AI) firms, and news organizations, and plans to eventually expand this data service to retail investors. He expressed encouragement over early demand for Truth API and expects further expansion into other sectors.

Struggling Growth, Seeking New Revenue Streams

Since its founding in 2021, Trump Media has yet to turn a profit and continues searching for sustainable growth. While Truth Social remains Trump’s primary social media platform, advertising revenue declined in the second quarter, though the company did not disclose specific figures.

To break through, Trump Media has recently pursued new ventures, including launching a 'patriotic investment' themed ETF, aggressively purchasing cryptocurrencies, aiming to transform into a digital asset custodian, and planning a merger with fusion energy company TAE Technologies.

The latest financial report shows Trump Media’s second-quarter revenue rose 89% year-on-year to $1.67 million, but net losses widened tenfold to $238 million, largely due to significant depreciation of its cryptocurrency holdings. The company’s stock, DJT, fell nearly 6% on Tuesday and has dropped approximately 49% over the past year, compared to a 21% rise in the S&P 500 index over the same period.

High-Frequency Traders Eye Millisecond Advantage via Truth API

Truth API was announced in July. While Truth Social continues to publish Trump’s and other key accounts’ posts simultaneously to all users, the API delivers information directly to clients’ computers, potentially allowing high-frequency trading systems to detect content before human users notice the posts.

This millisecond information gap is significant because Trump frequently uses Truth Social to announce major policy developments—such as tariff adjustments and diplomatic progress with countries like Iran—that can rapidly impact financial markets.

According to Fundstrat research, since Trump’s return to the White House, the five best and worst trading days for the S&P 500 index were all influenced by Trump’s posts. For example, on April 9, 2025, after Trump announced a temporary pause on certain tariffs, the S&P 500 surged 9% that day.

Millisecond Advantage Sparks Ethical and Legal Controversy

Truth API has also raised ethical and legal concerns. Virginia Democratic Senator Mark Warner has introduced legislation to prohibit social media companies from selling preferential access to market-sensitive information from government officials’ accounts to select clients.

McGurn defended the service, emphasizing that clients only receive publicly available information a few milliseconds earlier, calling ethical concerns a misunderstanding. A company spokesperson also stated the information is not non-public.

However, Richard Painter, a University of Minnesota professor of corporate and securities law and former chief ethics lawyer under the Bush administration, noted that for high-frequency traders, “milliseconds truly matter.”

Even though the information is eventually public, if paying clients can access and trade on it before the market fully digests it, there may be legal risks related to insider trading.

Trump’s 41% Stake Reignites Conflict-of-Interest Concerns

Another controversy stems from Trump’s direct financial interest in the company. Trump currently holds approximately 41% of Trump Media’s shares, valued at around $1 billion based on FactSet data. Although Trump does not participate in day-to-day management, he benefits directly through his ownership.

Jessica Tillipman, Deputy Director of Government Procurement Law Research at George Washington University Law School, pointed out that this structure gives the president a personal financial stake in the market impact of his own official statements.

In other words, a company benefiting Trump through stock ownership is now selling access to information created by him in his official capacity.

While Truth API’s current revenue remains “relatively limited,” Trump Media clearly views it as a new growth avenue. McGurn said the company will continue expanding its client base and believes the service can ultimately become a “meaningful and sustainable revenue source.”