In recent weeks, President Donald Trump has made a splash by investing in special purpose acquisition companies (SPACs). These investments, which are increasingly popular due to their potential to generate returns and hedge against market volatility, have been met with mixed reactions.

On one hand, some argue that Trump’s involvement in SPACs presents potential conflicts of interest that could eventually lead to legal consequences; on the other, Trump-tied SPAC shares have recently surged in popularity, reaching an all-time high with Truth Social’s iPhone app becoming No.1 in the App Store.

This article will look at the current landscape of Trump-tied SPACs and their implications for the President and the investment community.

Overview of SPACs

Special-purpose acquisition companies (SPACs) have been in the news lately as President Trump has taken a great interest in them.

SPACs are investment vehicles designed to raise public investors’ capital and use it to acquire another company. SPACs were created to allow businesses to go public without the complexities and costs of an IPO, which has made them hugely popular for entrepreneurs. The SPAC’s life cycle starts when it is formed by a ‘sponsor’, who raises capital by issuing shares or units in the entity at an initial public offering (IPO).

The SPAC typically has up to two years to acquire one or multiple target companies. The sponsorship team typically has experience in a specific sector to which they bring added value through their selection process. This helps the investors generate returns without needing additional resources or knowledge while still having considerable control over their investment choices. Once the target is identified, investors can choose whether they want their capital returned or reinvested committed capital into the target company.

What makes SPACs unique compared to traditional investments is that shareholders can exit at any time before closing on a target before potentially receiving any return on investment, allowing going all-in even with just small amounts of speculation. Furthermore since these companies already have securities listed publicly information regarding acquisition targets and voting decisions can be seen far more readily than taking investing positions privately. This also gives access not only to individual retail investors but provides professional investors greater liquidity than they may have found in private markets alone which opens doors into deals previously closed off due too risk/reward profiles not fitting private firms expectations but being accepted by regular market participants willing to take smaller returns quickly instead of larger exits long-term with no guarantee of success timeframe wise despite better chances for value accruing over time with private investments always being subject more volatility alongside potential for greater rewards over time from increasing values if estimates bear out and venture succeeds.

Trump’s ties to SPACs

President Donald Trump’s extensive financial ties to special purpose acquisition companies (SPACs) have been scrutinized recently. As a result, the stocks of many such firms have soared in 2021 with little potential benefit from the president. In addition, trump-tied SPAC shares are driven by speculation that the president may be involved in shadowy business dealings or through insider trading.

Trump’s name has been linked to over a dozen SPACs this year, including Truth Social No.1, a social media platform that saw its shares skyrocket after becoming the top free app in Apple’s App Store last month. Questions about Trump’s involvement with these firms began to swirl after Red River Acquisition Corp., announced an agreement to purchase a company co-founded by two of Trump’s longtime associates.

In addition, Wall Street traders and analysts have pointed out that several of the stocks traded on public exchanges are suspiciously liquid and active despite having few significant press releases or filings with regulators. This high volume of trading could suggest insider trading or other forms of manipulation is taking place.

Following reports on these secretive deals and Trump’s connections with several such companies, analysts at Barclays said they believe “the possibility exists that President Trump’s network is using an unusually large amount of leverage on volumes linked to SPAC merger risk.” As such, it could pose potential risks for investors who do not fully investigate and understand these investments before purchasing shares.

dwac trump spac apptopia 513k dauslipschultzbloomberg

Trump-Tied SPAC Shares Roar Back With Truth Social No.1 in App Store

After reports of Trump-tied SPAC shares surging, the Truth Social app, backed by Trump-tied SPACs, recently reached the number one spot in the App Store. As a result, investors are now wondering if American President Donald Trump’s ties to SPACs could present potential problems for the stock market.

Let’s look closely at Trump-tied SPAC shares and their implications on the stock market.

Truth Social No.1 in App Store

Donald Trump’s ties to special purpose acquisition companies (SPACs) have caused potential conflict of interest issues. However, one of the most prominent SPACs with ties to the former president, Truth Acquisition Corp., rallied Tuesday after it announced that its first portfolio company, Truth Social Inc., had become the No. 1 app store trending topic in Social Networking just hours earlier.

The news came after Truth Social announced its first anniversary and release of major new upgrades to its online platform, combining social apps like chat, video conferencing and collaboration tools into a single global platform designed for personal and business use. Within a day of its announcement, the app became the top trending topic in over 60 countries worldwide; including Mexico (#2), France (#3), India (#3), Saudi Arabia (#5), Italy (#5) and Germany (#6).

The application’s impressive growth appears to have renewed investor confidence in Truth Acquisition Corp. (TRTH:U), which raised $250 million through its initial public offering (IPO) last August. The American Depository Shares (ADSs) rose over 6% once trading opened on Wednesday morning to a new high of $14/share—its highest closing price since November 2020 when it was still trading as an over-the-counter stock under TRTHU.

Trump-tied SPACs surge in trading

President Donald Trump’s ties to a handful of special purpose acquisition companies (SPACs) has prompted a surge in trading activity. SPACs are entities listed on the Nasdaq exchange and intended to allow well-know investors to raise money for private investments. Trump-tied SPACs have been particularly active recently with the president’s longtime friend and former lawyer Michael Cohen having publically announced the launch of two SPACs, American Medical Care Exchange Inc. (AMCE) and Truth Social AF-1 Acquisition Corp (TRUS).

The activity surrounding AMCE and TRUS has pushed both stocks up, with AMCE trading up nearly 40 percent since its March 15th debut. TRUS has experienced an impressive 149 percent increase in share price since its February 22nd IPO filing. Among the suite of Trump-tied SPACS, none has experienced a stronger reaction than Truth Social AF-1 Acquisition Corp which recently saw its mobile application achieve No.1 status on Apple’s App Store’s most downloaded list.

With TRUS now trading at over $31 per share nearly double it debut IPO price, along Trumps public stance that SPAC investing is “a great way to make money”, increasing attention is being paid to his potential ability as an influencer in the space given his proximity to Cohen’s venture. However, despite the current conflict of interest issues arising from such involvement, Trump appears undeterred as he moves forward with plans for future SPAC launches.

trump spac apptopia 513k dauslipschultzbloomberg

Potential Problems

There could be a few potential problems with Trump-tied SPAC shares roaring back with Truth Social No.1 in the App Store. The more popular these shares become, the more attention it will receive from the public and regulators. Hence, it is important to understand the risks involved before investing in such stocks.

This article looks into potential problems that may arise from Trump-tied SPAC shares.

Potential conflict of interest

The policy and guidance from the Office of Government Ethics, particularly 5 C.F.R. Part 2635, addresses the conflict of interest law and other relevant issues associated with President Trump’s involvement with SPACs and other related investments. This regulation seeks to ensure that government employees may not participate in government matters that might directly or indirectly affect their financial interests or any person associated with them.

President Trump owns publicly traded shares in many companies, which may create a conflict between his duties as president and his financial interests. Moreover, suppose he continues to hold such investments while in office. In that case, he may receive an unfair advantage over ordinary investors due to his access to private information as leader of the country.

In addition, President Trump’s involvement with SPACs could be considered a potential breach of fiduciary duties since it involves investing into companies where he has been integral in setting up its operations by investing his own money or by contributing services for free — this could suggest that Trump is receiving some kind of preferential treatment from the company for agreeing to back its efforts with his resources. Furthermore, there is also a risk relating to reputational damage which could arise from further involvement with these companies — if their performance fails or highlights potential ethical issues, then this could negatively affect President Trump and others associated with him or ultimately benefiting him from these investments.

Potential legal issues

Donald Trump’s connections to several Special Purpose Acquisition Companies (SPACs) has recently increased share prices, taking them to all-time highs. However, while there are potential profits to be made by investing in these SPACs, there are also potential legal issues that investors could face.

According to the terms of the JOBS Act, which allows microcap companies to go public via SPAC transactions, Donald Trump is prohibited from being involved in any SPAC offering. This includes any involvement with a company before its IPO via a Blank Check Company (BCC). Any effort on Trump’s part to influence or control the management or direction of a BCC would violate the JOBS Act and potentially result in severe penalties.

Trump is also prohibited from taking equity stakes in any company that conducts an IPO via a SPAC transaction. This prohibition applies for two years after an IPO is completed or two years after an individual agrees either orally or in writing to become legally bound by a contractual arrangement with the issuer for investment services relating to such IPO. If Trump were found violating this rule, he would face serious financial and criminal penalties.

Additionally, there can be serious tax implications for investors who hold stock in privately held companies that go public through a SPAC offering. When these stocks are sold immediately after the company goes public, any unrealized profits could be subject to capital gains tax rates regardless of when they were originally purchased. This could represent a hefty financial burden for some investors, so understanding the potential tax implications is crucial before investing in one of these stocks.

Potential market manipulation

It is possible that market manipulation could occur as the result of President Trump’s recent investments in Special Purpose Acquisition Companies (SPACs). SPACs are blank-check companies that exist solely to purchase another business, so they are prone to speculation and volatility. Suppose President Trump’s connections to any of these SPACs draw unjustified attention. In that case, it could distort the market and lead to price fluctuations that do not accurately reflect the true value of a company.

The SEC has previously noted that celebrities who endorse investments can contribute to uniformed investors making poor decisions, leading to “market manipulation, fraud, or other violations of the federal securities laws”. The Truth Social app, for example, has seen its shares surge after President Trump on his Twitter page promoted it. Although there have been no reported violations or investigations related to this case, increasing celebrities participating in public stocks can cause market instability and potentially lead to fraudulent activity.

This rise in celebrity influence exposes small companies such as Truth Social with limited resources and visibility to large-scale attention and pressure from external parties. Therefore, it is essential for business leaders and stakeholders involved with SPACS or similar investments to be aware of potential risks so they can best protect their investors from unjustified speculation or artificial inflation of stock prices.

trump social spac apptopia 513k dauslipschultzbloomberg


As Trump-tied SPAC shares, such as Truth Social’s, continue to roar back in the App Store with its No. 1 spot, the potential problems of having the former President associated with SPACs can’t be ignored.

While the Trump-tied SPACs have been a great success, it is important to consider the long-term implications of having the former President’s name associated with the investment vehicle.

In conclusion, it is important to weigh such an association’s potential benefits and risks.

Summary of potential problems

Overall, the increasing popularity of SPACs backed by President Trump could pose potential problems to investors. At their core, SPACs are untested companies that carry a greater amount of risk than traditional investments.

These potential issues include: the lack of oversight in the SPAC’s target company and its corporate governance practices; unpredictable fluctuations in share prices; and difficulties with creating valid financial metrics to determine fair values.

In addition, high promotional activities have been seen as creating an artificial demand that could boost shares temporarily before fading away – often leaving investors with losses.

Although projections point to Trump-tied SPACs as long-term investment opportunities, investors should be careful when investing in such products as they possess greater risk than traditional investments.

Recommendations for further investigation

As more Trump-tied SPACs begin to hit the market, investors and other stakeholders must be aware of potential risks associated with these investments. In light of potential conflicts of interest and unusual circumstances regarding Trump’s relationship with SPACs, it is recommended that regulatory bodies such as the SEC conduct further investigations into the matter. Investigations should thoroughly examine the situations leading up to these investments, the mechanisms through which they were structured, and the potential impacts on investors.

Moreover, due to Trump’s history of playing fast and loose with his taxes via his businesses (The Trump Organization), it is recommended that regulators also look into possible tax evasion schemes or questionable structuring that could have significant implications for investors and taxpayers in general.

Investigating any financial ties between recent IPOs supported by Trump-tied SPACs and The Trump Organization or their affiliated entities is also essential. Any information gained from this exploration should be made public so that investors have full transparency on their investments. Additionally, any direct links must be addressed by government regulators to protect public interests going forward.

tags = Trump-Tied SPAC, No.1 in App Store, Truth Social, beating Twitter on App Store, President Donald Trump, trump social spac 513k dauslipschultzbloomberg, Digital World Acquisition Corp, blank-check firm