Trump’s Social Media Meme Stock Plummets as Investors Brace for Cash-Out

Shares of Donald Trump’s social media meme stock took another significant hit, plummeting over 16 percent on Monday morning. This latest decline coincides with Trump’s move to register shares for potential cash-out, raising concerns among investors.

Trump’s Cash-Out Move:

Trump Media & Technology (TMTG), owner of Truth Social, filed to register shares, including those linked to warrants. This suggests an early cash-out move by Trump and other executives before the obligatory six-month hold on sales expires in September.

Precipitous Decline:

TMTG shares have seen a sharp decline, dropping to less than $27 from their value at the time of last month’s merger, resulting in a significant decrease in Trump’s net worth within three weeks.

Despite the downturn, Trump and his associates could still retain millions of shares, potentially aiming to sell them for substantial profits in the future, pending approval from the US Securities and Exchange Commission (SEC) and TMTG’s board.

Analyst Warnings:

Analysts caution against investing in Trump’s meme stock, labeling it a “scam” and advising investors to steer clear.

Some supporters view investing in Trump’s stock as a means of supporting his reelection bid and providing financial assistance despite the risks to investors.