Trump Media enters prediction market business

Driving the news: On Tuesday, Trump Media and Technology Group announced Truth Predict, a prediction market partnership between Trump Media's social network, Truth Social, and Crypto.com Derivatives of North America.

What they're saying: "Truth Predict will allow our loyal users to engage in prediction markets with a trusted network while harnessing our social media platform to provide totally unique ways for users to discuss and compare their predictions," Devin Nunes, the CEO of Trump Media, said in a statement.

The big picture: Prediction markets have been enormously buzzy ever since their role shaking up the view of the 2024 presidential election.

• Big players appear convinced that betting markets that follow models like that of Kalshi and Polymarket will be the eventual winners.
• For example, the parent company of the New York Stock Exchange just took a stake in Polymarket, the leading prediction market.
• In prediction markets, users are betting directly against each other. In sports books, which have taken off recently, users bet against the operator of the book. In fact, DraftKings seems to be moving to embrace this new model.

By the numbers: Trump Media stock initially jumped about 3% on the announcement, but quickly gave back much of those gains.

• CRO, the token for Crypto.com, jumped 6% on the news, and has held it so far.

What's next: Beta testing should begin on Truth Social soon, with a full launch to follow for users in the United States first.

• Truth Predict will go global later.

Disclosure: In 2023, TMTG sued 20 media organizations, including Axios, for defamation. That suit in Florida is ongoing.