Trump Media and Technology Group, operator of US President Donald Trump’s Truth Social platform, said Wednesday it plans to roll out a blockchain token for shareholders that entitles them to perks and rewards.
The DJT token will be launched in collaboration with crypto exchange Crypto.com, and the distribution to existing shareholders set at a 1:1 ratio, or one token per share owned, according to the from the company.
The token “may” include rewards and perks for DJT shareholders, including discounts on the Truth Social media platform, the Truth+ media streaming platform, and prediction market Truth Predict.
However, the token is not a tokenized stock and does not entitle holders to shareholder rights or a claim on the company’s future earnings, Trump Media confirmed to Cointelegraph.
The token showcases how blockchain technology can be paired with traditional asset classes to provide benefits to holders, but also highlights how do not necessarily grant the same rights as ownership of the underlying asset.
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In June, asset brokerage platform Robinhood announced the for customers in the European Union.
Robinhood offered customers $5 in SpaceX and OpenAI “private equity” tokens as part of the rollout.
However, OpenAI disavowed the tokens almost immediately, warning prospective holders that they in the company nor entitle holders to any shareholder rights.
“We did not partner with Robinhood, we were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval. We did not approve any transfer,” OpenAI in response to the Robinhood announcement.
Attorneys and crypto industry executives told Cointelegraph that many tokenized equity products are meant to track the price of the underlying asset, but in a company or the contractual rights associated with traditional equity ownership.
“There is no direct claim on company assets, no voting rights, and no access to internal financial information,” according to John Murillo, chief business officer of fintech company B2BROKER.
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