The Launch of Trump’s Truth Social Network
In June 2021, Facebook suspended Donald Trump’s FB account for 2 years citing “his praise for violence” as the main reason behind the ban.
While Meta decided to take a short-term action against Donald Trump, Trump responded by “going his own way” and planned the launch of a 100% free speech social network as a direct competitor to Facebook.
Trump took the SPAC route to go public and caused a massive frenzy in share price for Digital World Acquisition Corp (DWAC), which soared from $10 to as high as $175 during the peak.
Data by YCharts
Former U.S. President Donald Trump is a polarizing figure who commands a ridiculous amount of attention throughout worldwide media outlets.
Prior to Trump’s industry-wide social media ostracism, Trump had over 146 million followers across Facebook, Twitter, and Instagram.
Truth Social Investor Presentation (Truth Social)
Truth Social will launch in the Apple iOS store by the end of Q1 2022 and I expect millions of users to defect from Facebook to Truth Social for several key reasons:
- Facebook’s search feature makes it impossible to find users and you’ll find the search results riddled with duplicate accounts, fake accounts, and spam accounts.
- Getting locked out of your Facebook account is a huge problem and I’ve personally lost several FB accounts over the years. If you lose access to your cell phone number, then kiss your Facebook account goodbye.
- Facebook’s decision to ban Donald Trump upset his core audience who rely on his antics for daily entertainment, wisdom, and motivation. Once Truth Social launches, I * expect many of these same Facebook users to flee and never return.
- Millions of conservative voters lack a safe space to be themselves and speak their minds freely. Truth Social solves this problem.
According to Truth Social’s Investor Presentation, the company expects to hit 16 million users in 2022 during the initial launch.
Truth Social Investor Presentation
Truth Social projects a 50% CAGR in users to peak at around 81 million by 2026.
Added competition for eyeballs is the last thing Meta needs at the moment and Truth Social could cause 100+ million users to defect in the United States alone over the next few years.
If Truth Social is a massive success, then Meta could lose hundreds of millions of users globally as conservative and right-wing voters choose Truth Social over Facebook.
Donald Trump’s Response to the Decline in Facebook Usage
According to Insider, Trump made a direct response to the drop in Facebook daily active users and suggested millions of people are eagerly awaiting Truth social.
This means people are tired of Fake News and abuse and especially tired of their political shenanigans. (Source: Insider)
“It could also be that people are waiting for TRUTH — the highly sophisticated platform that we look forward to opening in the not too distant future. Time to straighten out what is happening in our Country!” (Source: Insider)
Truth Social is a direct competitor to Facebook and will compete for Facebook’s older core audience.
Meanwhile, the younger generation continues flocking to TikTok over Instagram.
It’s hard to tell whether Truth Social will be a success, but I wouldn’t bet against Trump’s passionate following.
Article taken from Seeking Alpha.