The U.S. listed company announced its entry into the encryption field, and the stock price responded with a 15% pump.

A publicly listed company in the United States announced on January 29 that it is entering the Financial Service and fintech sectors, launching a new brand called Truth.Fi. This news caused the company's stock price to rise by 15%.

The company plans to invest $250 million of its over $700 million cash reserve through an investment firm. The investment scope includes not only traditional investment tools but also SMA (Separately Managed Accounts), ETFs, Bitcoin, and crypto-related securities.

Media reports indicate that Delaney Masko, the ethics director of a certain campaign legal center, has expressed concerns about the company's involvement in the Financial Service and crypto sectors. She believes this could lead to conflicts of interest, as the heads of regulatory bodies overseeing the financial industry will be appointed by the company's major shareholders, who will face the dilemma of how to handle issues affecting their boss's financial interests.

Former senior ethics lawyer Richard Painter also expressed similar concerns. He noted that even transferring shares to a trust cannot eliminate conflicts of interest. Painter is also worried that these investments could drive up asset prices in the cryptocurrency market, thereby posing systemic risks to the overall economy.

The company's CEO and Chairman, Devin Nunes, stated that the launch of Truth.Fi is a natural extension of the company's development. He mentioned that the company initially created a social media platform, then added streaming services, and is now venturing into investment products and decentralized finance.

Truth.Fi products and services are expected to launch in 2025, but they still need to obtain regulatory approval and funding support. This expansion will enhance the company's existing product portfolio, including its social platform and streaming services.

It is worth noting that a cryptocurrency launched by the company's major shareholder last week has already sparked some controversy. Reports have indicated that the company has been working to build a social network that can compete with mainstream social networking platforms.