Dogecoin Falls After Musk-Twitter Deal Fails, Will It Weaken Further?
Dogecoin (DOGE) tumbled on Saturday as the implosion of Elon Musk’s Twitter buyout dashed prospects for the memecoin’s mainstream adoption.
DOGE tumbled over 4% after the news, and is now trading around $0.069. The token appears to be showing more muted reactions to Musk’s announcements in recent weeks.
Musk called off the deal late on Friday through a letter sent by his lawyer to Twitter. The world’s richest man had earlier this year offered to buy Twitter for about $43 billion.
In his letter to Twitter, Musk cited a lack of disclosure from Twitter in its assessment of spam and fake accounts on the platform. The Tesla CEO had paused the Twitter deal in May over the same concerns.
No Dogecoin integration into Twitter?
The world’s largest memecoin had rallied substantially on the initial announcement of the deal, after Musk teased a potential integration of Dogecoin into Twitter.
Musk had been a vocal proponent of the memecoin even before the deal, and is largely tied to the token’s rise in popularity.
But this effect may be waning. A recent announcement from Musk’s Boring Company about accepting Dogecoin for some of its products had a limited impact on the token.
The memecoin had rallied 27% when Twitter’s board accepted Musk’s deal. But it has since sharply capitulated those gains.
DOGE is currently trading down about 59% for the year.
Twitter deal falls through, what happens next?
Dogecoin isn’t the only asset impacted by the cancellation of the Twitter deal. Twitter shares plummeted in aftermarket trading on Friday.
Twitter could now pursue legal action against Musk to follow through on the deal, which could result in a protracted legal battle between the two.
This could have a negative impact on Dogecoin prices, given that Musk is major supporter of the token. A separate lawsuit against Musk over alleged fraud involving the currency could also have a negative impact on the token.
- Fed’s Schmid Signals Opposition to Further Rate Cuts With Inflation ‘Too High’
- IBIT Bitcoin ETF Becomes BlackRock’s Most Profitable Fund, Nears $100B Milestone
- Bitcoin Tops $126,000 as Market Prices In Three-Week U.S. Government Shutdown
- Paul Tudor Jones Predicts Explosive Bull Market Amid Bitcoin’s ‘Uptober’ Rally
- Robinhood Outage Reported by Users, HOOD Stock Drops
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
