Truth Social and Crypto.com Collaborate to Launch Prediction Markets

Truth Social, the social media platform backed by Donald Trump, is set to introduce prediction markets through a strategic partnership with Crypto.com. This collaboration will enable users to engage in trading contracts based on real-world events, including politics, finance, and sports, according to CryptoNews.

Introducing Truth Predict

The new feature, dubbed ‘Truth Predict,’ will allow users to access real-time prediction markets directly within the Truth Social app. The integration is facilitated by Crypto.com’s U.S. affiliate, Crypto.com | Derivatives North America (CDNA), which will provide event contracts on various topics such as inflation rates, election outcomes, and sports results.

Devin Nunes, CEO of Trump Media and Technology Group, expressed enthusiasm about the venture, stating that it aims to democratize information and empower users by combining engagement with market sentiment to offer what the company terms as “actionable foresight.” Truth Social is poised to be the first publicly traded social media platform to incorporate prediction markets.

Regulated Expansion

The partnership aligns with Crypto.com’s strategy to broaden its regulated financial products. Kris Marszalek, CEO of Crypto.com, highlighted the potential of prediction markets to evolve into a multi-billion-dollar industry. The arrangement provides Truth Social with a federally compliant structure via CDNA, enhancing its appeal to U.S. users.

In addition to this partnership, Crypto.com has been expanding its footprint in the U.S. financial system. Recently, it received approval from the Commodity Futures Trading Commission (CFTC) to offer margined derivatives and has applied for a National Trust Bank Charter to extend its services.

Market Dynamics

The announcement comes at a time of significant activity in the global prediction market sector. According to Dune Analytics, trading volumes on major platforms have surged, reaching nearly $1 billion weekly. Leading players such as Polymarket and Kalshi dominate the space, with substantial institutional investments driving growth.

In this competitive landscape, Truth Social’s integration of prediction markets represents a novel approach by merging social media dynamics with financial trading. Users can convert “Truth gems,” a reward earned on the platform, into Crypto.com’s native token (CRO) for trading.

Beta testing for Truth Predict is set to commence shortly, with a full rollout planned for later this year, pending regulatory approvals. The move signifies a significant step for both Truth Social and Crypto.com in capturing a share of the burgeoning prediction market industry.

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