Truth Social, former president Donald Trump's personal social media platform, is facing a lot of tech and legal troubles, as reported by The Verge.
Its biggest problem so far is the stalled SPAC, a way to trade shares publicly without the diligence of an IPO. However, it has been delayed, which left the Digital World Acquisition Corp., (DWAC) the company that is set to take ownership of Truth Social, in a difficult position.
Based on the SEC filings, the company has lost over $6 million in the first half of the year, and they haven't generated any revenue so far. Currently, they only have $293 million in a trust where most of their assets are.
Moreover, the stock price of DWAC has dropped almost 75 percent of its value since March of this year, and in its SEC filing, the company said it will need more cash to continue operating. They also asked to extend the SPAC merger past the September 8th deadline.
Also Read: Truth Social Bans Account With Username That CEO Doesn't Like? Free Speech Platform Now Criticized
Truth Social's Operations In Trouble
Earlier this week, Truth Social stopped paying RightForge in March, and they now owe them at least $1.6 million in backdated payments, according to Fox Business. If the company doesn't pay soon, it could lose its hosting services.
Trump is the social network's biggest asset, basic tech errors are holding back the growth of the app.
In fact, even unto this day, it hasn't launched on Android operating systems, which may be due to "insufficient content moderation," as per Axios. A Google spokesperson stated that, "On Aug.19, we notified Truth Social of several violations of standard policies in their current app submission and reiterated that having effective systems for moderating user-generated content is a condition of our terms of service for any app to go live on Google Play."
Currently, Truth Social is working to address these concerns for the app to go live on Android.
Problematic Truth Social Posts
Reportedly, there are problematic posts on the platform, such as the ones that incite violence. Even though the platform has sensitive content warnings, not all sensitive posts are labeled properly. It shows that the platform have little in the way of content moderation that could potentially enable harmful posts.
The platform was created after Trump's social media bans and was launched in February. Many users flocked to the platform with the intent to post anything that they can't on other social media sites.
Related Article: Truth Social, Trump's Website, is Using Censorbots to Make the Platform 'Family-Friendly'; Partners with Hive
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Written by: April Fowell
