- Shares of Digital World Acquisition Corp. (DWAC) fell 8 percent on Tuesday after the arrest and appearance of former President Donald Trump in New York.
- Meanwhile, the DOW fell .81 percent at the same time.
- Trump’s arraignment caused other Trump-linked stocks, such as Phunware and Rumble, to fall as well.
- DWAC has experienced ups and downs since its founding in 2021, and the company has been affected by the controversy surrounding Trump.
actions of donald trump-Digital World Acquisition Corp. (DWAC), an affiliate of Digital World Acquisition Corp., plunged more than 8 percent as of 3 p.m. Tuesday after the former president was arrested and arraigned in New York.
Shares plunged shortly after Trump appeared for his arraignment following the grand jury indictment announced last week. Meanwhile, the DOW is down 81 percent at the same time.
Trump made history last week when he was indicted by a Manhattan grand jury on Thursday in connection with an alleged payment made to silence a former adult film star. stormy daniels before the 2016 election. Trump denies any wrongdoing in the case, including Daniels’ claim that they had an affair.
Drama surrounded Trump’s arraignment, when supporters and protesters gathered in front of the New York City Criminal Court, where his appearance took place. DWAC’s price drop was a stark contrast to the stock’s 10 percent rise Friday morning after Trump was impeached, according to CNN.
DWAC, along with other Trump-associated social media stocks such as Phunware (PHUN), which developed the Trump 2020 campaign mobile app, and Rumble (RUM), a video platform often used by conservative politicians who associate with Truth Social, also rose on Friday.
On Tuesday, PHUN had fallen just over 5 percent and RUM was considered volatile after Trump announced he would make live remarks from Mar-a-Lago in Florida on Tuesday night that would air on Rumble.
After Rumble announced the news at 11:45 a.m. ET on Twitterits shares rose to $9.66 a share before falling to $9.26 a share at 3 p.m. Tuesday.
Trump, who arrived in New York on Monday afternoon, was released before traveling back to his Mar-a-Lago resort in Palm Beach.
DWAC has seen its ups and downs in recent weeks as Trump faces mounting legal challenges. March 20th, DWAC trading halted on volatility after it jumped 15 percent at 2 p.m. The action was halted for about 10 minutes. The change came just days after the stock plunged to its lowest point since its founding in 2021.
After its founding, it rose to its highest value of $97.54 in February 2022 before gradually sinking to its current value of $14.19.
DWAC is a special purpose acquisition company (SPAC) that merged with Trump’s social media company, Trump Media & Technology Group (TMTG), in 2021 to take the company public. It has faced increased scrutiny, as the Securities and Exchange Commission launched an investigation into the trade that preceded the merger.
news week previously reported that DWAC announced that it could be “adversely affected” by the controversy surrounding Trump. DWAC published the ad in August 2020, just months before Trump lost the presidential election. Joe Biden.
“If President Trump becomes less popular or there are more controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, TMTG’s results of operations, as well as the outcome of the proposed business combination could be adversely affected,” a statement said.
news week contacted DWAC by email for comment.