Digital World SPAC drops 13% after Truth social app downloads plummet
- Digital World Acquisition extended its two-day drop to 13% as Truth Social downloads plummet.
- The Digital World SPAC plans to merge with a new social media app launched by former President Donald Trump.
- Downloads of the Truth Social app have dropped 95% in recent weeks, according to Bloomberg.
Digital World Acquisition, the
which plans to merge with former President Donald Trump’s new social media company, has fallen 13% in the past two days.
The decline comes as app downloads from Truth Social have fallen 95% in recent weeks, according to a Bloomberg report that cites data from Apptopia.
Daily downloads of the new app, which bills itself as America’s “big tent” social media platform, have fallen from a high of 170,000 to just 8,000, according to the report. Meanwhile, the number of daily active users on Apple devices has hovered around 513,000 over the past week.
But Truth Social is still in the early days of its launch, which has been plagued with bugs and a long list of hundreds of thousands of people waiting to access the platform after downloading it. The social media platform is also not yet available on Android devices, which could result in millions of additional downloads.
Truth Social counts Trump as president and former congressman Devin Nunes as CEO, a role he assumed earlier this year.
Truth Social’s bumpy launch isn’t the only problem facing Digital World Acquisition and its investors. The blank check shell company revealed an SEC investigation late last year. Senator Elizabeth Warren has called for an investigation into Trump’s relationship with Digital World SPAC, which quickly announced plans to merge with Truth Social after trading began last year.
Shares of Digital World have fallen more than 35% in the past month. But despite the big risks surrounding Digital World, SPAC is up nearly 500% from its SPAC IPO price of $10 per share.