Twitter’s future is uncertain as Elon Musk withdraws from the acquisition. Meanwhile, Twitter shares and Dogecoin are unexpectedly lower.
Elon Musk has stopped buying Twitter
On Friday, billionaire and Dogecoin supporter Elon Musk announced that he was withdrawing from the deal to acquire Twitter because the social media platform failed to meet its contractual terms to provide data on spam activity on the platform, according to multiple sources.
As reported by Reuters, a file read by Musk’s legal team states:
Twitter is in material violation of many provisions of this Agreement. It seems that Musk made false and misleading statements on which he relied when entering the Merger Agreement.
It is worth noting that the deal is one of the most anticipated and closely watched this year. What’s more, it took a while for the Twitter board to agree to the sale.
Twitter accepts Dogecoin (DOGE), but musk doesn’t trust spam data
In May, Musk announced that he was suspending the deal until the company made data on spam activity available on its platform. He also suspected the company was providing inaccurate data, claiming that spambots accounted for less than 5% of users. Fox Business reporter Eleanor Terrett attributed the statement to Musk, trying to explain why the company has not yet provided the necessary data, while Twitter ignored or refused requests for more information. Eleanor Terrett’s statements on the subject were as follows:
Twitter appears to be ‘significantly’ underestimating the proportion of spam accounts represented in active users.
It’s worth noting that Elon Musk’s pending deal with Twitter bolsters the social media platform’s share price at this time when it’s becoming increasingly difficult for technology shares to be considered risky assets. As a result, experts expect shares to drop after the latest announcement. Meanwhile, Twitter announced that it plans to take Musk to court:
The Twitter Board is committed to closing the transaction on the price and terms agreed with Musk. It also plans to take legal action to enforce the merger agreement.
Twitter and Elon Musk news make Dogecoin price fluctuate
Notably, the deal also affected the price movements of the popular meme coin Dogecoin. He rushed to the exchanges, predicting that investors would integrate the Dogecoin evangelist into the platform for tipping features like Bitcoin. The imminent closure of the deal has caused the token price to soar, according to a report that Musk hinted at in a meeting with the Twitter board.
On the technical side, Dogecoin shows that the 8- and 21-day SMAs are compressed below the current market value. DOGE price shows a significant difference between early risk takers and more conservative bulls.
The invalidity of the bullish thesis will be evident at $0.04914. Dogecoin is currently trading at $0.06926.
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