Trump Media, Crypto.com To Take On Polymarket And Kalshi With Truth Social Prediction Markets

Trump Media and Technology Group (TMTG) is partnering with Crypto.com to take on Polymarket and Kalshi with a new prediction markets platform on Truth Social.

Called Truth Predict, the platform will begin beta testing soon before a full US launch, with global expansion planned once regulatory requirements are met, according to a statement.

“For too long, global elites have closely controlled these markets — with Truth Predict, we’re democratizing information and empowering everyday Americans to harness the wisdom of the crowd, turning free speech into actionable foresight,” said TMTG CEO Devin Nunes. 

The move marks Trump Media’s most direct challenge yet to established prediction market leaders Polymarket and Kalshi, both of which face regulatory headwinds in the US.

TMTG’s shares closed up 0.8% yesterday and climbed a fraction of a percent in pre-market trading today. Crypto.com’s native CRO token slid more than 1%. 

TMTG share price (Source: Google Finance)

Prediction Markets A “Multi-Deca-Billion Dollar Industry”

TMTG’s move into the predictions market space comes amid a global boom for the industry.

Currently, Polymarket and Kalshi stand out, and both have received a lot of attention from venture capital firms. One of these firms is 1789 Capital, which is backed by the US President’s son, Donald Trump Jr., who is also on Polymarket’s board of advisors. 

Kalshi and Polymarket have become popular as users bet on outcomes related to sporting and other events. Polymarket took off after its prediction market showed Trump was leading rival Kamala Harris during the 2024 presidential election.

”Integrating prediction markets with social media will quickly expand this into a multi-deca-billion dollar industry,” said Crypto.com CEO Kris Marszalek on X.

TMTG And Crypto.com Build On Partnership

The move into the predictions market builds on a partnership announced between TMTG and Crypto.com in March. 

Back then, the companies announced that they would launch a series of “Made in America” crypto ETFs (exchange-traded funds) and other products. As part of the partnership, Crypto.com would provide the cryptocurrencies and backend infrastructure for the products. 

The companies also said in August that they will launch a digital asset treasury (DAT) firm named the Trump Media Group CRO Strategy, Inc. via a SPAC merger.

It would purchase $105 million in CRO tokens, or roughly 2% of the token’s supply. Crypto.com also agreed to buy $50 million in shares of common stock in TMTG. 

At the start of September, the companies confirmed that the deal was closed. TMTG acquired the CRO tokens at about $0.153 each as part of a 50% stock, 50% cash exchange with Crypto.com.

Polymarket And Kalshi Facing Challenges In US Market

TMTG and Crypto.com’s planned predictions market platform will enter the US as Polymarket and Kalshi face headwinds. 

At the start of the week, Kalshi filed a lawsuit against the New York State Gaming Commission, accusing the regulator of overstepping its jurisdiction. This is after the regulator sent a cease-and-desist letter to Kalshi last Friday for allegedly offering illegal sports betting in the state. 

Meanwhile, Polymarket had to exit the US market in 2022 following a settlement with the Commodity Futures Trading Commission (CFTC) for operating an unregistered derivatives trading platform. 

The US Department of Justice and the CFTC have since dropped their investigations into Polymarket, and the platform is preparing to re-enter the US market. 

According to an Oct. 28 Bloomberg report that cited sources familiar with the matter, Polymarket plans to to activate limited trades for US residents before the end of November. The platform will also reportedly focus on sports betting with this initial rollout.  

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