US President Donald Trump’s media company has advanced plans for its “first-of-its-kind” shareholder token airdrop, setting Feb. 2 as the record date used to determine eligibility.
The record date, or “snapshot” date, means that anyone with at least one share in Trump Media and is a “beneficial owner” or “registered holder” as of Feb. 2 is eligible for the non-tradable digital rewards token, the company announced on Tuesday.
Following the record date, Trump Media will use crypto exchange Crypto.com to mint the tokens, display them on the blockchain, and custody them until they are distributed to shareholders, the company said.
Token could provide discounts on Trump products
Trump Media, the company that owns US President Donald Trump’s Truth Social platform, first announced plans for a digital token for shareholders on Dec. 31.
The company has reiterated that the token is not a tokenized stock and won’t entitle holders to shareholder rights or a claim on the company’s future earnings.
It also can’t be redeemed for cash or other financial rewards.
Holders, however, could receive other rewards such as discounts tied to Trump Media products like Truth Social periodically throughout the year, it said.
The initiative is part of a broader effort to incorporate blockchain technology into the company’s ecosystem.
Previously, an airdrop of one token per share owned was floated, but Trump Media said that details regarding the process for the planned allocation and distribution were still in the works.
Trump CEO says regulator guidance a factor
Trump Media CEO and chairman Devin Nunes said in a statement as part of the announcement that regulatory guidance is playing a factor in the tokens’ implementation.
“We look forward to leveraging Crypto.com’s blockchain technology consistent with Securities and Exchange Commission guidance to benefit our shareholders and promote transparency, including by obtaining a clear picture of bona fide beneficial ownership as of the record date,” he said.
Related: Trump’s media company reports $2B in Bitcoin after crypto bills pass US House
Trump Media stock reportedly mostly owned by insiders
Stock in Trump Media (DJT) opened at $13.85 and rose to $14.94 on Tuesday, representing a more than 7% gain. However, the stock settled back to $13.91 as the markets closed.
Investor platform Simply Wall St estimates Trump Media has nearly 280 million shares outstanding, with over 41% held by individual insiders, 32% by the general public and 23% by institutions.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
