In a telling move that signals deep concern among investors, the co-founders of Trump Media & Technology Group (TMTG)—the creators of the Truth Social platform—have divested almost all their holdings in the company. This massive selloff by United Atlantic Ventures (UAV), an investment firm owned by former Apprentice contestants Andrew Litinsky and Wesley Moss, has sparked questions about the future of the company, traded under the ticker DJT. UAV offloaded nearly all of its 5.5% stake, which was reportedly worth around $100 million.

This move is significant for multiple reasons. First, it marks the exit of some of the original brains behind Truth Social. Litinsky and Moss were instrumental in pitching the idea of the social media platform to Donald Trump after he was banned from Twitter (now X) following the January 6 Capitol riot. Despite their early involvement, the co-founders’ relationship with Trump Media soured, leading to legal disputes over their right to shares in the company. After a federal judge in Delaware ruled in favor of UAV, the door was opened for Litinsky and Moss to sell their shares—and they seized the opportunity.

The Timing and Implications

The timing of the sale is particularly telling. The co-founders sold their shares as soon as the lockup agreement preventing large investors, including Trump himself, from selling their shares expired on September 19. While Trump has repeatedly insisted he will not sell his shares, reaffirming his commitment to Truth Social, the actions of UAV send a starkly different message. Trump has taken to selling watches, perhaps he doesn’t need to sell his shares. The company’s managing members now retain just 100 shares between them, effectively signaling that they have little confidence in the platform’s long-term prospects.

DJT’s Declining Stock Value

Another ominous sign is DJT’s volatile and declining stock price. After peaking at $79.38 on its first day as a public company, DJT closed at just $13.98 per share on Thursday. Trump’s personal stake in the company, which was valued at $6.2 billion in May, has plunged to approximately $1.6 billion, according to CNN. This staggering loss in market value underscores the growing concern that Truth Social is far from the financial powerhouse it was initially projected to be. Trump still has not sold his shares and seems content, at least so far, hawking sneakers and watches for cash.

United Atlantic Ventures’ selloff isn’t just a move by some disgruntled co-founders; it may be the signal that “smart money” is leaving DJT stock behind. Experienced investors tend to make decisions based on future outlook rather than past performance, and the co-founders’ divestment indicates they believe the upside potential of the stock is limited, if not outright nonexistent.

The Writing on the Wall for DJT?

Truth Social has faced numerous challenges since its inception, from competition with mainstream platforms like X to regulatory scrutiny and financial instability. The company was already grappling with legal battles and internal disputes even before this major selloff. The sudden departure of key investors like UAV may further destabilize the stock’s performance, as confidence erodes among institutional and retail investors alike.

What’s particularly interesting is that this selloff occurred despite Trump’s vocal support of the platform. While he insists that Truth Social is a means to “get out his word,” the platform has yet to show any significant financial or user growth to justify such optimism. DJT stock’s continued decline following Trump’s presidential debate against Kamala Harris further illustrates how little impact Trump’s public persona has had on stabilizing the company’s fortunes.

Is It Time to Exit?

With the original investors out and the stock’s value plummeting, it begs the question: Is all the smart money already out of DJT stock? Litinsky and Moss certainly seem to think so, and their exit raises alarm bells for anyone still holding shares. While Trump may insist that he is not selling his shares, the co-founders’ actions tell a different story—one of diminishing confidence and growing skepticism about the long-term viability of Truth Social.

For investors, the message is clear: When the insiders sell, it may be time to reconsider holding DJT. The fact that these key figures behind the platform are now mostly out of the game signals that all the “smart money” might have already left the building.