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Trump Media & Technology Group and cryptocurrency exchange Crypto.com have scrapped plans to bring prediction markets to Truth Social, including sports-related event contracts, while also ending a separate agreement to create a digital asset treasury company built around Crypto.com’s CRO cryptocurrency.
The prediction market product, announced last October and branded “Truth Predict,” was intended to allow users of Truth Social and Truth+ to trade event contracts, including sports derivatives, directly within the platforms. The companies had planned beta testing ahead of a national rollout.
The deal could have made Truth Social the first major social media platform to offer prediction markets directly to users, giving the product access to the platform’s large built-in audience.
The companies also abandoned plans for Crypto.com to service certain exchange-traded fund offerings and ended an agreement to establish a digital asset treasury company that would have accumulated billions of dollars worth of CRO.
CRO is the native cryptocurrency of Crypto.com’s Cronos ecosystem, which includes networks designed to support decentralized finance, gaming and other Web3 applications.
Crypto.com Chief Executive Kris Marszalek said current market conditions had made the proposed ETF and digital asset treasury plans unattractive, as reported by Bloomberg.
“After analyzing these proposed ETFs and DAT from every angle, we’ve reached the same conclusion: moving forward under current market conditions doesn’t make sense,” Marszalek said in an emailed statement. “We will continue to pursue other ETF opportunities.”
The decision comes as the cryptocurrency market has faced weaker sentiment, with Bitcoin falling sharply from its peak last year and investor enthusiasm for companies pursuing crypto-focused treasury strategies fading.
Marszalek said Crypto.com would seek another use for the CRO that had been committed to the planned treasury company.
“As for the CRO committed to the DAT, we’ll find a better way to allocate these resources in order to drive revenue, increase demand and grow the value of the ecosystem,” he said.
The collapse of the Truth Social agreement comes as prediction markets expand rapidly, particularly in sports-related event contracts that have attracted scrutiny from regulators and gaming companies over their similarities to traditional sports betting.
Crypto.com already has prediction market partnerships with Fanatics and FanDuel and operates its own consumer-facing prediction market platform, OG.
The company has also attracted investment from Citadel Securities, which recently invested $400 million in Crypto.com at a valuation of about $20 billion.
Trump Media, meanwhile, has been pursuing businesses beyond social media. The company announced plans in December to merge with privately held fusion developer TAE Technologies in an all-stock transaction valued at more than $6 billion.