Trump Media plant ETFs mit Crypto.com

The Trump Media and Technology Group (TMTG), the company behind the Truth Social Social Media platform, has announced that they will open a number of new ETFs and ETPs together with Crypto.com. The ETFs planned under the label “Truth.Fi” are said to contain both cryptocurrencies such as Bitcoin (BTC) and Cronos (Cro). In addition, you want to rely on securities of American companies, in particular from energy -related and technological industries.

Crypto.com takes over the technical infrastructure and custody of the digital assets. The ETFs are expected to come onto the market in 2025, subject to regulatory permits, and internationally offered internationally – including in Europe.

CEO Devin Nunes emphasized that the funds are based on “America-First” principles and are intended to promote companies that focus on growth and technological innovation-“free of woker ideology and political self-expression”, as literally stated in a press release.

Crypto.com-CEO Kris Marszalek welcomed the partnership and emphasized that the new ETFs will soon be available for over 140 million users of the Crypto.com app. In addition to ETFS, TMTG also plans the introduction of individual investment accounts in which the capital of investors is managed separately and individually – unlike ETFs, where many investors invest in a standardized portfolio. TMTG wants to invest up to $ 250 million in such a SMA out of its own assets.

In parallel to the announcement of the collaboration with Trump Media, Crypto.com is exposed to serious accusations. A well-known blockchain forensic technician who regularly reveals grievances in the industry under the pseudonym ZachxBT speaks of possible fraud in this context.

At the beginning of March, the subsidiary Cronos Labs caused excitement in the crypto scene. The company brought a total of 70 billion previously burned cro tokens back into circulation-albeit only as a strategic reserve, which is initially not treated directly on the free market. Originally, these 70 billion cro tokens were originally burned in 2021, which had drastically reduced the total amount to around 30 billion Cro.

As a result, however, there is a massive dilution of the existing token offer, which has so far been unprecedented in the crypto industry. For comparison: Binance provides a prime example of a successful Burn mechanism with the BNB token, which is burned regularly and the overall offer of which is continuously reduced. This shortage and the continuous benefits of the token increase its value for investors. It is precisely this mechanism that may also have motivated numerous investors to originally invest in Cro. At that time, the historical “burn event” with a reduction of a full 70 billion Cro had a significant positive effect on the perception of the token. The fact that the burned tokens are now reduced and brings back to circulation is a precedent that is viewed extremely critically in the crypto industry.

Crypto.com controls a large part of the Cro-token by subsidiaries such as Cronos Labs, which is why the company was able to achieve a majority for the proposal within the network and enforce this re-mint. Although this coordination was formally based on the rules of the protocol, the question of the actual decentralization and democratic participation within the cronos ecosystem and comparable networks again arises.

It is particularly critical that Cronos Labs expressly justifies the newly created strategic reserve with the aim of starting an ETF based on CRO and making the token more attractive for institutional investors. Since Crypto.com has announced an ETF cooperation with Trump Media almost simultaneously, it is reasonable to assume that these new cro tokens are at least partially intended for the planned ETF launch with TMTG. So far, however, there is no complete clarity. In this context, the assumptions are worrying that the World Liberty Financial platform, which operates in a close environment of the Trump family, is in Nevicious token-swap transactions could be involved. Even if there is no exact connection between TMTG, the newly created Cro-Reserve and World Liberty Financial, deals could have been agreed in the background that could disadvantage private investors.

So far, Crypto.com is silent about these allegations and has not published an opinion. In any case, uncertainty about the actual motives raises long-term questions about the credibility and sustainability of the cro-ecosystem.

The market still celebrates the message

Despite these inconsistencies, the announcement of the planned financial products voted the market for cronos. In the meantime, the cro course was able to grow by 40 %, but is still far from its former all-time high.

The topic of crypto ETFs keeps moving because many investors speculate on additional liquidity that could flow into the market. So far, only Ethereum has been a real benchmark for crypto ETFs and although the start was going well, the ether ETFs cannot build on the success of the Bitcoin ETFs. This raises the question of whether this price rally is sustainable or just an immediate reaction to the announcement.