Dogecoin (DOGE) fell on Saturday after the collapse of Elon Musk’s Twitter purchase crushed hopes of widespread acceptance for the memecoin.
After the news broke, DOGE fell more than 4% and is now trading at roughly $0.069 per coin. Musk’s pronouncements seem to have had less of an impact on the token recently.
In a letter sent by his lawyer to Twitter late on Friday, Tesla CEO Elon Musk announced that he was canceling the transaction. The wealthiest guy in the world had already made a bid to purchase Twitter for $43 billion earlier this year.
Musk blamed Twitter’s evaluation of spam and bogus accounts on a lack of information in his letter to the social media network. When Tesla CEO Elon Musk put off the transaction with Twitter in May, he was concerned about the same issues.
As a result, Dogecoin surged following the first announcement of the transaction and Musk hinted at the inclusion of the memecoin on Twitter.
Even before the purchase, Musk had been a strong supporter of the memecoin, and his influence on its ascent is undeniable.
However, it’s possible that this influence is diminishing. There was just a minor effect on Dogecoin after a recent statement from Musk’s Boring Company regarding adopting the token for certain of its goods.
When Twitter’s board agreed to Musk’s proposal, memecoin was up 27%. The advantages were quickly reversed, though.
This year, DOGE has lost nearly 59 percent of its value.
As a result of the Twitter deal’s termination, Dogecoin is not the only asset that has been harmed. Following the close of the market on Friday, the value of Twitter’s stock fell.
It is possible that Twitter may now take legal action against Musk to ensure that the acquisition goes through, which may lead to a lengthy court struggle.
As a result, Dogecoin’s value might be negatively impacted by this news. If a second action against Musk over suspected currency fraud is filed, it might have a detrimental effect on the token.