US President Donald Trump’s media company has laid out plans for a “first-of-its-kind” token airdrop for shareholders, setting February 2 as the record date for determining eligibility.
The ownership record date or “snapshot” date means that anyone who owns at least one share of Trump Media and is a “beneficial owner” or “holder of record” as of February 2 is eligible for a non-tradable digital reward token, the company announced on Tuesday.
After the settlement date, Trump Media will employ cryptocurrency exchange Crypto.com to mint tokens, display them on the blockchain and store them until they are distributed to shareholders, the company said.
The token could provide discounts on Trump products
First, Trump Media, the company that owns US President Donald Trump’s Truth Social platform announced plans to make the digital token available to shareholders on December 31.
The company reiterated that the token is not a tokenized stock and will not entitle its holder to shareholder rights or claims regarding the company’s future profits.
It cannot be exchanged for cash or other financial rewards.
However, holders can receive other rewards, such as discounts tied to Trump Media products such as Truth Social, “periodically” throughout the year, they say.
The initiative is part of a broader effort to incorporate blockchain technology into the company’s ecosystem.
Previously, a 1:1 ratio was introduced, i.e. one token per share held, but “additional details regarding the planned allocation and distribution process” are still being prepared.
Trump’s CEO says regulatory guidance is an significant factor
Trump Media CEO and president Devin Nunes said in a statement part of the announcement that regulatory guidance plays a role in the token rollout.
“We look forward to leveraging Crypto.com’s blockchain technology under Securities and Exchange Commission guidelines to benefit our shareholders and promote transparency, including by obtaining a clear picture of beneficial ownership as of the record date,” he said.
Related: Trump media company reports $2 billion in Bitcoin after cryptocurrency bills pass U.S. House of Representatives
Trump Media stock is reportedly mostly owned by insiders
Stocks in Trump Media (DJT) opened at $13.85 and rose to $14.94 on Tuesday, an escalate of more than 7%. However, after the markets closed, the stock returned to the $13.91 level.
Simply Wall St. Investor Platform estimates Trump Media has almost 280 million shares outstanding, with over 41% of those shares held by individuals, 32% by the general public and 23% by institutions.
Warehouse: Trump’s crypto ventures raise conflicts of interest and insider trading issues
