In an eagerly anticipated move, Truth Social, the social media platform developed by former President Donald Trump, is set to make its Wall Street debut under the ticker symbol DJT after securing approval to merge with Digital World Acquisition Corp. Trump's approximate 60% stake in the company is valued at over $3 billion, making it a potentially lucrative venture.

However, if Trump decides to cash out his holdings or borrow against them, it could have negative consequences for other investors. The fear of a mass sell-off has led to concerns about the stock's potential to tumble, as followers of meme stocks may not follow a buy-and-hold strategy.

Trump's financial situation could significantly improve should he choose to exploit his stake. This windfall could help relieve his financial strains, including legal fees and a $457 million appeal bond related to a New York civil fraud verdict. Additionally, it could close the fundraising gap between him and current President Joe Biden, who currently has a campaign war chest three times larger than Trump's.

While the merger's SEC filing prohibits Trump from selling or borrowing against his shares for six months, he could potentially obtain a waiver from the company's board, which includes close allies like his son, Donald Trump Jr., and former Representative Devin Nunes.

The potential success of Truth Social's market launch also hinges on the behavior of its retail-trading supporters. Thus far, many Digital World Acquisition Corp. investors seem less focused on fundamental factors, considering the low usage and revenue reputation of Truth Social. The platform reported a net loss of $23 million in the first half of 2023.

The forum dedicated to Digital World Acquisition Corp. saw mixed reactions after the merger was announced, with one user expressing excitement and calling for a display of patriotism. However, panic ensued after a single-day loss of 12%, as some forum members accused short-sellers, corruption, and pump-and-dump traders.

Currently, DWAC shares have seen a notable year-to-date increase of 120% and closed at around $38 on Friday. If Truth Social's newly formed entity reaches a price of $40 per share, it could be valued at over $5 billion, with Trump retaining the majority of the stock.

As Truth Social prepares to debut on Wall Street, the eyes of investors and industry experts turn to the potential risks and rewards. The upcoming months will be crucial in determining whether this social media venture can sustain its growth and shake off concerns about its financial stability.