Former President Donald Trump has run into significant setbacks with his social media platform Truth Social, including a financial crisis, a modest following, and the rejection of a trademark application, Business Insider reported.
Signs are growing that Truth Social is in financial turmoil, with only a modest following after launching six months ago.
The platform has now halted payments to the company that hosts it, RightForge, and owes its parent $1.6 million.
The parent company’s merger with Digital World Acquisition Corp has yet to take place, 10 months after the announcement. Digital World Acquisition Corp is known as a blank check company specifically formed to carry out a merger. The fusion was supposed to bring in fresh funding for Trump’s platform.
DWAC published a call for a special shareholders meeting on September 6 this week, at which investors will be asked to approve a one-year delay in carrying out the merger.
This is not the only issue facing the platform. Trump ran into a big setback in trademarking the name for his platform this week as well.
According to a filing released this month and tweeted by a trademark lawyer, Trump’s social media app had its application refused by the U.S. Patent and Trademark Office because the name is not unique enough and bears too much resemblance to other business entities’ names.
The patent office found that Trump’s company name was “confusingly similar” to other entities, including Vero — True Social, an app-based social media platform, and the Truth Network, a Christian radio broadcast network, NDTV reported.
The issues have been piling up for Trump’s social app. In June, the company buying Truth Social warned the deal could fall through because of a slew of grand jury subpoenas.
Truth Social is also under investigation by the Securities and Exchange Commission.
Built by the Trump Media and Technology Group, Truth Social strongly resembles Twitter, which permanently suspended Trump’s account in January 2021. Truth Social was also plagued by technical difficulties shortly after its launch in February — with potential users placed on waitlists after finding themselves unable to create accounts.
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