President Donald Trump is charging fees for exclusive, high-speed political information that directly influences the stock market, according to analysis by financial writer Kjell-Magne Rystad.
The Market Impact of Social Media Policy Shifts
Ever since Donald Trump began his second presidential term, market watchers have tracked how his posts on social media—particularly on his own platform, Truth Social—swing stock prices up and down. According to reporting detailed by Rystad, these statements often follow a predictable pattern. Trump frequently floats aggressive policies like steep tariff increases or foreign conflicts to extract concessions.
However, because tariffs and wars typically spark negative reactions in the stock market and threaten the portfolios of wealthy investors and Trump’s own net worth, the president often alters course when resistance builds. This dynamic inspired the market shorthand “TACO”—an acronym for “Trump Always Chickens Out,” as noted by financial observers. When subsequent posts signal lower tariffs or potential peace deals, stocks rebound sharply.
High-Speed Trading and the Truth API Advantage
Professional stock traders have long capitalized on rapid shifts driven by the TACO trade. Because stock prices react instantly to breaking news, speed is everything. A fraction-of-a-second advantage in receiving information translates directly into profitable trades.
To capture this market, Truth Social launched the Truth API service, priced at one million kroner per month. According to BI Professor Espen Henriksen, who spoke on NRK Nyhetsmorgen on August 6, the API provides machine-readable access that grants high-frequency traders equipped with fast computers a millisecond-level advantage.
Rystad points out that this service essentially accelerates the TACO dynamic, giving paying clients a jump on the rest of the market. So far, five companies have purchased the high-priced service from the Trump-owned platform.
Regulatory Questions and the Silence Over Buyers
Both politics and finance rely heavily on trust, backed by strict legal frameworks designed to prevent abuse. In politics, anti-corruption laws prohibit officials from leveraging power for personal gain. In finance, strict rules ban trading on non-public information, commonly known as insider trading.
Rystad argues that selling early access to presidential statements challenges both sets of rules, effectively resembling the sale of insider information to anyone willing to pay the steep fee. While legal experts will ultimately decide the legality of the arrangement, Trump faces a long history of ongoing legal disputes and has largely avoided severe legal consequences in past challenges.
Transparency surrounding the service remains limited. According to the BBC, a wall of silence surrounds the identities of the five companies that purchased the API access, and those buyers are unlikely to volunteer that information voluntarily.
Did you know?
Frequently Asked Questions
What is the Truth API?
The Truth API is a machine-readable data service offered by Truth Social that provides rapid, automated access to posts published on the platform for a high monthly fee.
How does the TACO trade work?
Traders exploit a recurring pattern where aggressive policy threats from the administration cause market drops, followed by a sudden retreat or softening of the stance that triggers a market rebound.
Is the Truth API legal?
How many companies have purchased the service?
According to available reporting cited by financial analysts, five companies have purchased the Truth API service so far.
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