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The Stock Scam Surrounding Truth Social
Two investors involved in Truth Social recently pleaded guilty to insider trading, shedding light on the shady dealings within the company.
Insider Trading Scheme
Florida venture capitalist Michael Shvartsman and his brother Gerald Shvartsman admitted to participating in an insider trading scheme related to the public offering of former President Donald Trump’s social media venture. The brothers pleaded guilty to one count of securities fraud, which carries a maximum prison sentence of 20 years, as per federal prosecutors in New York.
From the inception of Trump’s Truth Social deal, red flags have been raised, indicating a potential scam involving dubious individuals seeking to profit at the expense of others.
Potential Investment Risks
Investing in Trump Media poses significant financial risks, with a high probability of losing one’s money. The future of the company remains uncertain, especially considering its lack of transparency regarding user metrics and overall value.
If former President Trump decides to sell his shares, the stock is likely to plummet, revealing the unstable foundation on which Truth Social is built. The company’s lack of tangible assets and revenue-generating strategies further exacerbates its potential downfall.
The precarious nature of Truth Social suggests an inevitable collapse, leaving investors vulnerable to potential losses. It remains to be seen how much profit Trump can accumulate before the inevitable downfall impacts stakeholders.
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