CNBC senior economics reporter Steve Liesman has strongly criticized Trump Media & Technology Group's new Truth API, an initiative that will provide financial firms with faster access to posts from former President Donald Trump on Truth Social. Liesman described the plan as making him "want to puke, literally puke," arguing it conflicts with the government's efforts to ensure equitable distribution of sensitive economic data.
"It is one of the most upsetting things I have ever heard," Liesman stated on MS NOW, expressing concern that the paid feed could create an unfair advantage for paying subscribers.
Trump Media defended the Truth API, with a spokesperson calling Liesman's criticism "ill-informed at best." The company stated that financial firms routinely pay for similar data feeds from other social media platforms like X and Reddit, emphasizing that the Truth API offers access "milliseconds sooner" to close latency gaps for firms prioritizing immediate information.
Dan Nathan, co-founder of RiskReversal and a CNBC contributor, noted that the millisecond advantage would be most significant for professional traders employing algorithmic and high-frequency trading strategies, rather than long-term investors.
However, the controversy extends beyond the immediate trading advantage, with critics like anchor Stephanie Ruhle questioning if the practice constitutes insider trading or merely another "grift." Ruhle also pointed to the potential for Trump's family to profit from selling expedited access to the former president's posts.
Trump Media announced that the Truth API is slated to begin serving institutional customers on August 1. The company reported that it has already secured initial customers and is in the process of onboarding additional partners, though pricing details have not been disclosed. Interim CEO Kevin McGurn expressed optimism, stating that as adoption grows, Truth API is expected to become a "meaningful, ongoing source of revenue for the company, creating lasting value for shareholders."