When I saw the news that the stock price of Truth Social went into freefall after the company initally went public for $8 billion, I immediately sent a joke to a friend text circle: "Whoever allowed the contract to keep Trump from dumping the stock until 6 months post-sale is gonna be covered in ketchup." Shortly after it was released, the company's stock soared to $70 a share, initially meaning Trump, on paper at least, had netted $3 billion in wealth. But Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, told CNN he was "confident the stock price will eventually drop to $2 a share and could even go below that," because Truth Social's business model is not conducive to profit.
"The large mismatch between stock price and stock value will sorely tempt the cash-poor Trump to sell off a significant portion of his shares, in a potential maneuver that I believe I am the first to label 'Trump and dump,'" Timothy Noah of the New Republic joked. "Pump and dump is an unethical practice where influential figures talk up a stock they own a lot of shares in, artificially inflating the value, and then sell it off for a major profit before the rubes realize they bought a lemon. Because Trump is contractually obliged not to sell his shares yet, he's watching the value slide downhill before he can cash in, while other hustlers openly brag to Reuters they used the blind loyalty of Trump fans to pull off the pump-and-dump.
