Trump’s ‘Major Announcement’ Turns Out to Be an NFT Rally, and SPAC Digital World Shares Predictably Mind
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Former US President Trump appears to have overhyped a supposedly “big announcement” he was due to make today, judging by the price action in shares of Digital World (NASDAQ:DWAC) , a SPAC slated to take on 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 “big announcement” on Thursday, spurring Digital World shares, which serve as a proxy for anything related to Trump in the pre-merger phase, to peck significant gains.
Donald Trump said he had a big announcement for today.
The announcement was a new NFT project on Truth Social, $DWAC. pic.twitter.com/TMfvsH1wk6
— unusual_whales (@unusual_whales) 15 December 2022
However, according to the big reveal, the latest initiative from the former US president apparently revolves around a collection of NFTs, with each priced at $99 ahead of the holiday season.
The underwhelming nature of this announcement appears to have disappointed Digital World investors, with the stock currently down over 5 percent. Of course, SPAC’s stock had also embarked on a short-lived bull run ahead of the midterm elections, only to see the rally fizzle after the much-hyped red wave turned out to be just a splash.
The Trump NFT trading cards are insane 😭 pic.twitter.com/LMVkN4Vqew
— moon (@MoonOverlord) 15 December 2022
Recall 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 into allegations that the SPAC’s management violated securities laws by having private discussions about a merger with TMTG as early as possible. May 2021, but fails to disclose this relevant information in its public filings. The SEC is also looking into reports that Rocket One Capital may have been aware of the impending merger between TMTG and DWAC prior to the public announcement. In light of this development, the date for the actual implementation of the merger agreement has now been pushed back to September 2023.
Do you think Trump’s entry into the NFT space is a good strategy? Let us know your thoughts in the comments section below.
