$DWAC is wack/ Trump dump

Work in progress, this is just the bare bones


Ah, DWAC. The SPAC we all thought was going to crash after it was up to $14 and then watched it run to $170 from the side-lines the next day, good times. All is not lost though; I believe there’s going to be another window to make some money from this horrible mess of a media platform. I believe at the least this is going to be a “sell the news” play or at best the platform flops completely on launch.

Digital world acquisition Corp ($DWAC) is the SPAC with their sights on taking Donald Trump’s Trump Media & Technology Group public (TMTG). Recently, since the announcement of the site’s launch shares have climbed from $50 all the way to $90.

What is truth social?

“TRUTH Social is America’s “Big Tent” social media platform that encourages an open, free, and honest global conversation without discriminating against political ideology.” – From their website.

Truth social is the sequel nobody asked for to “From the desk of Donald Trump”… a website that trump posted on for a month before it was shut down but in short It’s a twitter-like PPM model of social media.

The Bear Case

Truth social has had some bad press come about it since it’s announcement.


Truth Social is built using Mastodon’s source code, but in October, Mastodon published a statement Truth Social was in violation of Mastodon’s software license because Truth Social claimed it was proprietary and because Truth Social didn’t share its source code back. Mastodon said it sent a formal letter to Truth Social’s chief legal officer asking that it share the source code, and Truth Social has since added an “open-source section to it’s website.”


A similar social media platform was launched by Trump’s former aide Justin Miller. Currently has only around 4 million total users in total . Comparing this to a company like Twitter with over 300m monthly active users .


Another similar social media platform with 20 million total users with 2.3 million active accounts.


Currently there are 37.2 million shares outstanding but they could balloon to 193 to almost 225 million, depending on which stock price and earnout scenario plays out, this would give DWAC a valuation of close to $15 billion. This kind of valuation is insane for a company that only expects to make $114m in 2023, and they’re assuming they’re going to grow which if the other right wing platforms are anything to base this off, it doesn’t look likely.

Wild speculation

Big tech clearly doesn’t want Trump on any of their platforms, it could get pulled from app stores fairly quickly.

The launch is probably going to attempted to be thwarted by hackers because it’s Trump, I couldn’t find anything on the number of employees, I’m not computer savvy but It can’t be a good thing to have your source code public for everyone to see.

I’ve been trying to find the number of people they employ but couldn’t find anything, they couldn’t even be bothered to make the beta private at people were able to get into it just by typing a URL. Doesn’t sound very secure to me.

A PPM model for social media seems insane since the generally accepted model for social media is that they make money from selling data and advertising, how many people are going to pay for something all their friends are on that they get for free?

The play

Right now IV is jacked to the tits so picking up puts is not worth the risk. I’m hoping IV dies down towards the end of this month and it continues to run towards launch, start of February so we can pick up puts. However, I still think they’re going to be expensive.


TMTG intends to launch more than just a social media platform. There been talk amongst MAGA communities of Trump launching his own media news group. Include upcoming midterm elections and potential 2024 announcements by Trump for a bullish cases on future runs for the $TMTG when it’s listed.

From the TMTG website:

To counter this dangerous exercise of Big Tech monopoly power, President Donald J. Trump and TMTG are building a media and technology company rooted in social media, digital streaming, and more. TMTG intends to even the playing field by providing people with open media platforms where they can share and create content without fear of reputational ruin.

Trump and TMTG can say whatever they want, whether or not that will happen is a long shot. TMTG wants to build a company to rival AMZN, GOOG, NFLX, meanwhile their golden goose is known for losing money on arguably less complex companies than the above tech companies.

Not to mention, who is going to build the tech? It’s well known the majority of software engineers lean very liberal, even FB is starting to have some trouble hiring because of the black mark it may leave on a candidate’s CV. You think top engineers are going to risk working at TMTG? Besides that, what cash do they have? Software engineers are amazingly expensive, they will need to pay out the ass to hire and retain talent.

A huge issue is how TMTG is going to even earn revenue. The majority of revenue from these types of companies are earned via ad revenue. In 2020, large brands “boycotted” Facebook advertising because of the PR issues Facebook was having at the time Companies boycott Facebook. The majority of advertisers won’t touch TMTG with a 10 foot pole when they can advertise on other platforms to reach the same people without the PR backlash they would get from advertising on TMTG.

Personally I’m waiting through February to see where the stock goes and will pick up puts for a couple weeks expiry if the price action remains this high in order to factor in news cycles regarding what I believe will be a botched launch.

In short:

  1. Nobody is going to build the very complicated tech TMTG wants to build because the majority of that talent pool hate Trump
  2. Advertisers are not going to risk advertising on TMTG properties because they will face a huge PR backlash and they can reach the same audience on other platforms anyway so no revenue for DWAC.
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The only reason I would consider puts on this is just seeing how once mergers occur with SPACs the tickets just completely fall after a short period of time.

VTIQ → NKLA (granted this one peak after the merger, but it still fell. Should note this was before the whole truck & sexual misconduct scandal)
BZFD (forget premerger ticker)
VORV (forgot premerger ticker)


DWAC will turn out the same as DJT (NYSE) research it - the same owner, different project, same goal - I would play calls to capitalize on the fomo of irrational retail investors, but they’ll be left with the bag with shares, and trump will be left with the money. Same grift, different era, different company.

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Pointed out by Ridn2lo



Puts play?



This was my part of my original play, but since the news is out I’m assuming this is priced in.

I’ll be looking for another entry after Feb 21 hopefully seeing it go up between then and end of Q1.

IMO there’s a strong likelihood this is delayed well beyond Q1 or the launch is an absolute shitshow.


This is probably the most overvalued stock there is lol. I’m surprised macro conditions haven’t impacted them that much, even though they are a speculative SPAC. I plan on scaling into puts/short position.


This thing is definitely going to see some more downward movement in my opinion. Planned on playing puts closer to the expected launch date, but now that the news is really out about their lack of progress I expect it to go down quicker than anticipated. Will be looking at a position for myself soon.


Fyi. Just updating this thread.

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I’ve been following the insanity with DWAC and have been day trading it. Just looking for prime entries with minimal risk (just above a support line with a. Stop loss just under the support line). I’ve gone in 6 times and been green 5 of those, so it has been good to me.

I personally think this thing will break $90 and then run to triple digits before it ultimately collapses.

The SI is 14%, utilization is 100% and CTB is over 200% (has been for over a week). Also shorts avg price is in the $50s and are down ~38% (according to the ortex bot).

I understand it’s a high risk play so only hopping in and out with a small portion.

I currently see a strong resistance at $85 but I think once that’s breached it will run to 90-100 range. I’ll be looking into going short once that happens, which I’m assuming will be closer to launch time.

Strict day trades to me but there is money to be made in the short term from it.



Heavily skeptical of SA blogs and would Need to look more into this, but there is rumblings that the SEC could prevent the merger from going ahead.



Should be a similar link to those who don’t have SA subscription.

Seems the biggest argument is here, which actually could be a pretty big deal:


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Peter Thiel could possibly come in and act as the fix here.

Keep a watch on this today. Apparently Beta site was launched and Don Jr shared Trumps first post on other platforms. Was big candle and jump
In AH yesterday and up 5 percent already in premarket. Could get some major FOMO and run which inevitably means it will come back down as well.

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This thing is a house of cards. That said very dangerous to fight the kind of people buying and holding stock in this out of pure political emotion. (I am completely apolitical btw, I only care about analyzing the effect politics/government has on markets good or bad) This SPAC reeks of backroom dealing, the SEC is under a lot of pressure to stop a lot of the SPAC craziness. My take is that DWAC will be low hanging fruit for them to go after. I am close to taking a $20 put a year out or so. Just too much chance of a really bad news story and this thing going south quick.


Take it with a grain of salt. TA works until it doesn’t.

edit: post-market. Still within the triangle. Will be watching


Saw a couple news sites saying the app has gone live in Apple’s app store. Might decide to run some soon.


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Checking premarket and it looks like DWAC went from ~85 to past 135, but has declined back to around 100.

The usual suspects are moving in sympathy too. Even with the whole Russia thing, might make some interesting moves during regular market hours today.