Former US President Trump appears to have overdone the hype on a supposedly “major announcement” that he was scheduled to make today, judging by the price action in the shares of Digital World (NASDAQ:DWAC), a SPAC that is slated to take the Trump Media and Technology Group (TMTG) public via a reverse merger. Yesterday, Trump posted on his bespoke social media platform, Truth Social, that he would make a “major announcement” on Thursday, spurring Digital World shares, which act as a proxy for all things related to Trump in the pre-merger phase, to notch sizable gains.
The announcement was a new NFT project on Truth Social, $DWAC. pic.twitter.com/TMfvsH1wk6 — unusual_whales (@unusual_whales) December 15, 2022 However, as per the great reveal, the latest initiative by the former US President apparently centers on a collection of NFTs, with each one priced at $99 ahead of the holidays.
Here it is: pic.twitter.com/yBLpn1Zb0f — unusual_whales (@unusual_whales) December 15, 2022 The NFTs will allow their holders the chance to win a dinner with Trump, play golf with him, etc. The underwhelming nature of this announcement seems to have disappointed Digital World investors, with the stock currently down over 5 percent. Of course, the SPAC’s shares had also embarked on a short-lived bull run ahead of the midterm elections, only to see the rally fizzle after the much-touted red wave turned out to be a mere splash.
— moon (@MoonOverlord) December 15, 2022 Bear in mind that the merger between Digital World and TMTG has been complicated by a flood of federal investigations, including an ongoing investigation by the SEC and FINRA on allegations that the SPAC’s management violated securities law by holding private discussions about a merger with TMTG as early as May 2021 but failing to disclose this pertinent information in its public filings. The SEC is also looking into reports that Rocket One Capital might have been privy to the impending merger between TMTG and DWAC before the public announcement. In light of these developments, the date for the actual consummation of the merger agreement has now been pushed back to September 2023. Do you think Trump’s foray into the NFT space is a good strategy? Let us know your thoughts in the comments section below.
