Digital World Acquisition Corp.’s (DWAC) stock was doing tremendously well in October 2021 when it soared over more than 1000% in just two days.
It has recently plummeted by more than 10% following the announcement of the launch date of ‘Truth social’, a social network owned by Trump media and technology group (TMTG), a media company owned by the former US President Donald J Trump.
Within the first hour of trading, the stocks dropped below $55.59, which is quite a drop keeping in view the previous closing of $60.27. The stock price plunged to the lower cap of the day’s range, nearing $53.50. The price crystallized at $53.98.
The Digital world acquisition stock was hit so hard since DWAC was planning to take TMTG public via SPAC, resulting in the highest trading pre-close by SPAC by far (60.3 dollars), i.e., a 20% hike from the previous closing. Since its tie-up, DWAC shares have been volatile to take the Trump Media and Technology Group (TMTG) public.
The stock soared 20% upwards post the news that came out regarding the launch date of the subsidiary company of Trump Media and Technology Group, the ‘Truth social’ app. From February 21, the app will be available on all app stores.
So, why ‘Truth social’? The new social media platform stands up to big Techs such as Facebook, Twitter, and Youtube. The aforementioned companies removed Trump’s social media handles and access due to the havoc that was caused at the Capitol by Trump supporters. To prevent the re-occurrence of any such mishaps, his handle was deactivated, and as a response to this, the ex-president resorted to creating his social network by the name ‘Truth social’.
In addition to this, Trump also enforced several lawsuits against the tech giants. We don’t know yet that this is just a vengeful response against the tech companies, or with it comes another Trump presidential campaign propaganda or internet dominance.