Trump Media & Technology Group has withdrawn from cryptocurrency projects, citing market conditions and changing priorities, leading to an 8.6% drop in CRO token price.
On August 7, Trump Media & Technology Group, Crypto.com, and Yorkville Acquisition Corp. announced they would no longer pursue the establishment of a public treasury for the CRO token, citing unfavorable market conditions and a shift in business priorities.
The collaboration aimed to launch Trump Media Group CRO Strategy, Inc. in 2025, with Yorkville Acquisition Corp. set to list on Nasdaq under the ticker MCGA. The new entity was expected to receive 6.3 billion CRO tokens, representing 19% of the total supply, with an estimated transaction value of $6.4 billion.
A joint statement confirmed the conclusion of work on the digital treasury, and it was announced that the agreement regarding Crypto.com’s role in supporting the Yorkville America ETF has also been terminated. Following the news, the price of CRO fell by 8.6%, dropping to $0.04.
Abandonment of Prediction Markets on Truth Social
The partners also scrapped plans for prediction markets on Truth Social. Instead of creating their own infrastructure, they are exploring a marketing deal to promote Crypto.com products to Truth Social users. The Truth Predict service was initially slated for launch in the fall of 2025.
Kevin McGurn, the interim CEO of Trump Media, stated in an interview that the prediction market niche is already saturated with major players, making it impractical to invest in developing the necessary technology. He suggested that Trump Media should focus on serving as a distribution channel and data provider instead.
Leadership Changes Influence Strategic Focus
McGurn attributed the withdrawal from cryptocurrency initiatives to the need to concentrate on the company's media projects and prepare for a merger with TAE, a nuclear company, which is expected to be finalized by year-end. He clarified that this decision is unrelated to any controversies surrounding the company linked to former President Donald Trump.
Despite stepping back from crypto initiatives, Trump Media will retain its digital assets, managing 9,542 BTC valued at over $600 million, according to Bitcoin Treasuries. Notably, in 2025, Trump Media generated more than $1.4 billion from its cryptocurrency ventures.
