Originally posted by Adam_PoE
Searching "truth social waitlist" on Twitter finds many people lamenting they had waited for a month or more and their waitlist numbers were not changing. Needless to say, that is not how a waitlist should work; as new users were added, people should have steadily moved up in the list, not stayed the same.People have posted screenshots showing that their waitlist numbers had actually increased over time. Evidently, the Truth Social waitlist numbers were totally fabricated to create a perception that over a million people were wanting to join.
Truth Social, the Donald Trump-backed social network, aims to attract an "open, free, and honest global conversation" on its platform "without relying on hostile Big Tech companies," according to a new regulatory filing that offers a glimpse into the business.
A major obstacle to fulfilling that mission: The app has not yet attracted any paying advertisers, the filing with the Securities and Exchange Commission shows. And its parent, Trump Media & Technology Group, is losing money and "expects to incur significant losses into the foreseeable future," the filing said.
In the short term, Truth Social appears to be banking on an agreement that could help bolster its user base: It will have an exclusive window on Trump's messages, according to the filing.
That means even if Twitter lifts its ban on Trump, there would be a lag before his comments can appear on any other platform.
"Donald Trump has agreed not to compete with Truth Social for his own benefit," according to the filing from Digital World Acquisition Corp. (DWAC), which is merging with Trump Media & Technology Group, or TMTG. The filing is a registration statement, or S-4, with the SEC about the proposed merger.
To be sure, Mr. Trump is no mere user of the Truth Social—he will serve as chairman of the new company following the merger, and stands to profit from its success given that he is also a major shareholder. In turn, TMTG said that in order to succeed it needs Trump to attract "millions" of his supporters to register for, and regularly use, its platforms.
The real test may be whether Truth Social can transform a head start on Trump's messages into revenue—so far, ad sales are nonexistent, according to the regulatory filing. The company has not yet started charging advertisers, and it may not book any ad sales from Truth Social until 2023, the filing said.
Whether advertisers will open their wallets for Truth Social in the long run remains uncertain, with many advertisers preferring to sidestep content seen as overtly political or controversial.
In 2021, TMTG booked just $2.1 million in "related party" sales from a "licensing agreement with one of the stockholders," although the filing does not provide additional details. It lost $59 million last year.
Among the filing's 66 pages of potential risks for investors are several related to Trump, including if he "were to cease to be able to devote substantial time to Truth Social." Trump's death, incapacity, or harm from "numerous" lawsuits also could impact the company's success, the filing warns.
And it flags Trump's prior track record running businesses: "A number of companies that were associated with Donald Trump have filed for bankruptcy. There can be no assurances that TMTG will not also become bankrupt."