An alumni social media platform President Donald Trump launched with a ton of hype and saw strong downloads initially. A new report shows that interest could decline, which could impact a SPAC.
What happened: Downloads from Social truth dropped 93% since the app’s first week of availability, according to a report by The Wrap.
The drop comes after the app ran into technology issues and what can best be described as an unstable launch that prevented many people on the waitlist from accessing the app.
Initial downloads were around 800,000 in the first week according to the report and have now dropped to around 60,000 per week on the iOS store as of Apple Inc. AAPL.
“This is down 93% from its launch week, when it saw 872,000 installs during the week of February 21,” Sensor Tower Strategist said. Stephanie Chan noted. “We estimate that Truth Social has so far reached approximately 1.2 million installs since launch.”
Truth Social is currently not available for Android users, the platform owned by Alphabet Inc. GOOGGOOGL.
The Truth Social-focused website has also seen a drop in visits from six million the week it launched to less than two million in recent weeks, The Wrap said citing data from Similarweb.
Related Link: 7 Key Takeaways From Donald Trump’s SPAC Deal
Why it matters: Truth Social is part of Trump Media and Technology Groupwho announced the merger of SPAC with Digital World Acquisition Company DWAC in 2021. News of the SPAC merger was well received by the market, with SPAC shares reaching $175 and becoming one of the best IPOs in 2021.
Truth Social is said to be a competitor to social media platforms such as Twitter Inc. TWTR and Facebooka unit of Meta Platforms Inc Facebook.
Trump himself has been banned by both of these platforms and should be one of the biggest catalysts for people to sign up for Truth Social.
To scold, which prides itself on being a neutral video platform that takes on social media platforms that censor people, is also going public through the SPAC merger. Rumble will go public with CF Acquisition Corp VI CFVI.
Rumble has hosted several politicians and conservative voices banned elsewhere, including Trump, who has posted videos of some of his rallies on the platform.
According to the report, Trump has yet to post on Truth Social a month after the platform went live.
Trump recently announced that he hit a hole-in-one while playing golf with Ernie Els. The news was share on Twitter with a press release from the spokesperson Liz Haringtonwho also shared videos of Trump walking towards the hole.
Instead of posting the news on Truth Social, people had to read it on Twitter, a platform that banned Trump’s account.
DWAC Price Action by Benzinga Pro: Shares of Digital World Acquisition are down 1.86% at $68.54 on Wednesday afternoon.