Trump says 'I love Truth Social' one day after DWAC stock plunges on social media merger vote

[jgmiller]

17. Basically a legal pump and dump

DWAC has never had any real value and Truth Social is not profitable and Trump couldn't survive the SEC scrutiny to take it public so DWAC was createed to go public without any ties to Trump. It traded flat for almost 2 years then word of the merger hit his followers and they started buying shares of what is basically a shell company and drove the price up. They vote to merge with TS and suddenly on paper Trump has $3B. The problem is that he has a 6 month lockup where he can't sell the stock. Of course the board can (and will) vote to remove that lock up period but Trump still has a few problems. First no insitutional buyers are going to touch the stock and if he puts large blocks for sale the price will drop like a rock. The only way he can get value out of the shares is if he sells in small lots and hopes his MAGA followers keep buying them.

Something else to think about he can't really talk about the stock to his followers to get them to keep buying or it will be an illegal pump and dump. I don't think he's ever had the SEC coming after him so maybe he wants to add that to bingo card.