Investors Have No Confidence Over Donald Trump’s Social Network Truth Social
After ex-President Donald Trump was banned from practically all relevant social networks, especially Twitter, he simply founded his own. But things are probably not going so well there, investors are running away from Truth Social before the planned IPO.
Donald Trump’s network was officially launched in February of this year, but one can certainly argue about the success of Truth Social – even if founder and figurehead Trump certainly doesn’t want to hear about a failure. But the numbers don’t lie, especially when followed by dollar signs. For example, in August it became known that Truth Social already owes hoster millions of dollars, and now there is even more trouble behind the scenes.
And this time the dimension is much larger. Because like the news agency Reuters reported, numerous investors have withdrawn from the Digital World Acquisition Corp. This so-called SPAC (Special Purpose Acquisition Company) is a kind of shell company that is founded for the purpose of going public and serves to collect capital for it.
Billion Dollar Is A Dream
This company actually wants to raise a billion dollars for the IPO, but they are a long way from this goal or have suffered a significant setback. Because private investors, who previously pledged $139 million, have now withdrawn their pledges.
This has to do with the investigations into Trump, among other things. This withdrawal is possible because Digital World Acquisition Corp was unable to meet a one-year deadline that expired on September 20, 2022.
With the withdrawal of the first investors – the majority of 100 million dollars is said to come from the hedge fund Sabby Management – the trouble could only really begin because according to Reuters more financiers are likely to cancel their commitments in the coming weeks.
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