How the EU’s $1B Fine on Elon Musk’s X Impacts the Crypto Market

The European Union is preparing a huge penalty against Elon Musk’s social media platform, X (formerly Twitter), for not following the Digital Services Act (DSA). This law aims to fight disinformation and keep online platforms safe for users.

According to The New York Times , the fine could go over $1 billion , and the EU might also force changes to how the platform works. The case marks the first major use of the DSA and could raise tensions for the crypto market.

Source: X

Why is Elon's X Being Fined?

The officials of the EU have expressed dismay at X, accusing the company of denying data to researchers, not verifying paid users, and being opaque when it comes to online advertisements. These are risks that can promote foreign interference as well as misinformation.

A second issue is regarding the management of hate speech and misinformation, which X describes as "politically censorship." The firm is still negotiating with the EU but may end up in court this summer. The U.S. has begun criticizing the EU for unfairly targeting American firms. Twitter is a central location for cryptocurrency news; thus, market sentiment and investor confidence may be affected by the tussle.

Elon, Trump, and the Cryptocurrency Connection

Now, let’s talk about Dogecoin , which Musk often supports. Since news of the EU investigation broke, Dogecoin's price has dropped 9.81% in the last 7 days, according to CoinMarketCap , currently sitting at $0.1669 with a $24.54B market cap . Further investigations and action against Twitter will lead to the DOGE’s price decline.

Source: CoinMarketCap

How This Affects the Crypto and Memecoin Market

Right now, the global crypto market cap is $2.69 trillion , up just 0.60% in the last day. The total market volume has dropped by over 31% , now at $89.21 billion . Most of this comes from stablecoins , which make up over 95% of daily volume.

But here’s the bigger concern, Dogecoin is often seen as the leader of the memecoin world. If DOGE goes down, other popular coins like Shiba Inu , Pepe , and Official Trump Coin could follow. Experts believe this could trigger one of the biggest memecoin crashes ever seen.

With Bitcoin's dominance slowly increasing and market volume dropping, the crypto world is becoming more cautious. A huge fine on Elon’s X could bring serious negative effects to several Token projects, including those deeply connected to Musk and Trump.

Conclusion

Elon’s platform X is facing serious heat from the EU, and it’s not just a tech story—it’s deeply tied to the crypto world. With its connection to Dogecoin , and his influence in the Trump government, this fine could ripple through the entire memecoin ecosystem.

Crypto users , traders, and the community should keep an eye on how this unfolds. Any further actions or statements by Musk, Trump, or the EU might impact Token prices and the future of many projects in the crypto space.