Donald Trump was out for vengeance in October 2021. He had been barred from Twitter nine months prior, robbing him of his main means of communication with his fans. His solution? Create his own Twitter account.
Truth Social, as it was dubbed, had the ability to increase Trump’s wealth by billions of dollars. Supporters flocked to Truth Social’s special purpose purchase company, or SPAC, as soon as he revealed the plan.
Shares of the SPAC, Digital World Acquisition Corp., skyrocketed from $10 to $175 in two days, suggesting that the company was worth $22 billion, with his stake worth $19 billion.
The anticipation was never in sync with reality. A collection of big-money financiers pledged to put $1 billion into the endeavor in December 2021—but only if they received a favorable deal.
On the open market, shares were selling for $45 at the time. However, under the terms of the deal, new owners would be assured a return as long as the shares remained above $10.
Forbes earlier estimated the worth of Trump’s interest at $10 per share, which came to $730 million.
However, times have shifted. Even Trump’s most ardent supporters are less enthusiastic about Truth Social than they once were.
The Justice Department, Securities and Exchange Commission, and Financial Regulatory Authority are all investigating the endeavor, looking into things like trading behavior and correspondence between the SPAC and Trump’s company.
Meanwhile, the SPAC, which dismissed its CEO last month, has only until September 8 to finalize the merging.
To make things worse, Elon Musk purchased Twitter in October and immediately overturned the prohibition on Trump and other right-wing personalities.
This weakened the argument that the world required a more conservative form of Twitter. Today, shares of Trump’s SPAC are 92% off their highs, selling at $14 per share, implying that the former president’s company is valued at $1.2 billion.
That remains ridiculously high. The underlying issue is that almost no one utilizes Truth Social. Prior to its debut, an investment pitch predicted that the app would have 81 million users by 2026.
It now has an estimated 5 million users, more than a year after coming online. Given that Trump controls approximately 85% of the company and Twitter is estimated to be worth $42 per user, the former president’s share is likely to be valued at around $180 million today.
The decline pushed him down 205 places to No. 1,217 on the 2023 World’s Billionaires ranking.
Even that may be excessive. Truth Social is expected to acquire 100,000 new members per month. If individuals keep joining at their present rate—assuming no one leaves or dies—Truth Social will not reach its estimated 81 million members until 2086.
Trump would be 140 years old at that time. Truth Social will most likely join Trump Steaks, Trump University, and GoTrump.com in the cemetery of unsuccessful Trump enterprises.
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