Truth Social's parent company is standing behind a product that lets wealthy clients see Donald Trump's posts before everyone else.
Kevin McGurn, the interim CEO of Trump Media & Technology Group, defended the service on CNBC's "Squawk Box" Monday. He also shared that customer sign-ups are growing faster than expected.
It gives paying customers earlier access to Trump's Truth Social posts, which critics argue lets well-funded firms trade on market-moving information before the general public even sees it.
What Truth API Is and Why It Is Getting Attention
The service is essentially a direct feed. Clients who pay the hefty monthly fee get Trump's posts delivered to their systems ahead of the public timeline. For firms that trade on news, that head start can be worth a lot of money.
Trump is one of TMTG's largest shareholders, with his stake held in a revocable trust. That means the same person whose posts are being sold for early access also benefits financially from the company selling that access.
It is an unusual setup, and it has drawn criticism from people who worry about a two-tier information system. If some traders see Trump's statements before others, they can act before the rest of the market reacts.
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The company says it is just offering a data product. But the timing matters. A single post from Trump about a company, a policy, or an industry can move stocks in minutes. Getting that information even a few moments earlier is an edge.
The CEO's Defense: More Customers Are Coming In
McGurn did not back away from the product. He told CNBC that sign-ups are climbing steadily.
That is up from two weeks earlier. During TMTG's inaugural quarterly earnings call, McGurn said more than 10 customer agreements had been signed. Now the number sits in the mid-teens, which suggests the service is finding a market despite the controversy.
For a company that has struggled to show consistent revenue, this product might be one of its clearer paths to income. A dozen or so clients paying up to six figures per month adds up, even if the customer count sounds small.
The company's pitch appears to be that speed matters, and they are willing to sell it. The criticism does not seem to be slowing down the sales process.
The bottom line: This is a business decision wrapped in a media controversy. Trump Media network is monetizing the speed of information, and it is working.
What This Means for Individual Investors
For the average person who checks Truth Social or gets news alerts on their phone, the takeaway is about fairness and speed. The market has always rewarded people who get information first. This product just makes that gap official.
It also raises a practical question: if you are trading on news about Trump-related stocks, you are likely already behind. The question is how far behind.
Truth API is not a consumer product. At $100,000 per month, it is for hedge funds, trading firms, and other institutions that can afford to pay for every possible edge. The rest of us get the posts when they are public, which is after the paying customers have already seen them.
That does not mean the market is rigged. It means speed has a price, and some players are willing to pay it. For investors who do not have six figures to spend on a news feed, it is worth remembering that the information eventually becomes public. Everyone can use it once they have it.
The service is new, the customer count is still small, and the long-term demand is unknown. But the direction is clear. The people who run Truth Social believe there is money to be made in the seconds between when Trump types and when the world reads. So far, the market is agreeing.
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