Less than two years since it was founded and went into operation, Donald Trump’s social mediate site, Truth Social, is unable to pay its bills and on the verge of financial collapse.
The Washington Post reports that Truth Social has no reliable source of income, which is likely to doom it:
Six months after its high-profile launch, the site — a clone of Twitter, which banned Trump after Jan. 6, 2021 — still has no guaranteed source of revenue and a questionable path to growth, according to Securities and Exchange Commission filings from Digital World Acquisition, the company planning to take Trump’s start-up, the Trump Media & Technology Group, public.
The company warned this week that its business could be damaged if Trump “becomes less popular or there are further controversies that damage his credibility.” The company has seen its stock price plunge nearly 75 percent since its March peak and reported in a filing last week that it had lost $6.5 million in the first half of the year.
How bad are things at Truth Social? The site is on the verge of lacking a hosting service, which would render it unable to appear on the web:
There are signs that the company’s financial base has begun to erode. The Trump company stopped paying RightForge, a conservative web-hosting service, in March and now owes it more than $1 million, according to Fox Business, which first reported the dispute.
The company has also been unable to trademark its entity name, which means anyone can start up at similar site and name it the very same thing, which would further erode efforts to build a loyal audience:
The U.S. Patent and Trademark Office this month denied its application to trademark “Truth Social,” citing the “likelihood of confusion” to other similarly named companies, including an app, “VERO — True Social,” first released in 2015.
Usage is also fading, especially since the FBI raid on Mar-a-Lago, with its views plummeting to about 300,000 a day, down from 1.5 million on the day of its launch.
Looks like the “great businessman” is about to destroy yet another company.
