Social truththe The social media platform that former President Trump launched after he was kicked out of Twitter faces an uphill battle as it reportedly racks up debt while generating little revenue.
The social media platform owes over a million dollars at RightForge, the service that hosts the application on the web, Fox Business reported earlier this week, citing three people with direct knowledge of the matter. According to Fox Business sources, Truth Social has only sent RightForge three payments – and hasn’t paid the company at all since March of this year. Sources say RightForge is considering legal action to recover the $1.6 million owed to them, while sources say The Washington Post that the two companies were communicate exclusively through lawyers those last weeks.
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But for now, RightForge — which positions itself as supporting free speech and opposing “big tech censorship” — still publicly backs Trump. “We fully support the president and his efforts,” RightForge chief executive Martin Avila told The Daily Mail. Job.
Truth Social may be struggling in part because traffic is down. The Post reported that views on the site have dropped significantly since the site’s launch – down 300,000 daily views from the 1.5 million daily views it saw on day one. In addition to technical failures and a series of fake accounts, the company also encountered setbacks in acquiring a trademark for “Truth Social”. The U.S. Patent Office noted that two other companies with similar names lead to a “risk of confusion” if Trump was to obtain the trademarked name, he therefore refused the request. Trump will likely appeal the decision.
Digital World Acquisition Group, a blank check company (SPAC) attempting to acquire Truth Social, said in public filings that the social platform has neither a guaranteed revenue stream nor a solid path to growth. The company also said this week that it could suffer damages if Trump “become less popular or if there are new controversies that damage his credibility.”
The SPAC is also currently under investigation by the SEC. The commission is investigating whether Digital World and Truth Social entered into negotiations before Digital World was made public, which would be illegal. Meanwhile, Digital World’s share price has fallen nearly 75% since March, and the company said it lost $6.5 million year-to-date.
In other repositories, depending on the JobDigital World questioned the potential success of Truth Social, writing that “a number of companies associated with [Trump] have filed for bankruptcy” and that “there is no guarantee that [Trump’s media company] also won’t go bankrupt.
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