The price of Dogecoin has been rallying in tandem with the bullish news of Elon Musk purchasing Twitter. It continues to maintain such high values even in a bear market due to the expectations that Musk, who has publicly expressed support for the meme coin in the past, would incorporate the crypto into the social media platform. However, Musk has not shown any indication of doing this so far, so what happens if crypto is not implemented into Twitter?
Twitter Dropping Its Crypto Plans
Elon Musk’s ownership of Twitter has come with a lot of expectations, especially among crypto investors. At first, it did look like the billionaire planned to move forward with its plans for implementing and making crypto a prominent part of the platform. But this has changed with news coming out of the market on Friday.
Twitter has reportedly officially stopped its plans to develop its crypto wallet feature. This product would have allowed users to send, receive, and store cryptocurrency on the social media platform, but it has now been shelved following massive layoffs by the company.
On Thursday, the social media platform reduced its workforce by 50% and is reportedly focusing its manpower on other products including the $8 verification fee proposed by Musk. The platform apparently wants to get this feature launched in November, alongside a product previously called “Super Follows.” The latter would be relaunched as “subscriptions” allowing creators to put their content behind a paywall.
DOGE down 25% from Tuesday highs | Source: DOGEUSD on TradingView.com
Naturally, the products that Twitter has chosen to move forward with, (or not move forward with), will have an impact on the price of Dogecoin, which is already apparent given the meme coin’s performance early Friday.
Dogecoin Now Follows Twitter
Elon Musk’s standing in the Dogecoin community and his ownership of Twitter has now effectively made it so the performance of the meme coin is now closely tied to that of Twitter. It was proven following the acquisition and now following Twitter’s announcements.
On Friday, the price of Dogecoin dropped 10% after it was reported that Twitter would be pausing its crypto wallet development. So while the majority of the market was seeing green, DOGE had plunged in tandem with the Twitter stock price which sits at $53.85 ahead of the start of the trading day.
DOGE would likely see more decline in its price if there are no definitive crypto plans for Twitter made public in the coming weeks. This also extends to the addition of DOGE as a payment method in the “Tip Jar” feature. The meme coin has already shed more than 25% of its Tuesday highs and could see more downside as the market enters the weekend.
Featured image from Capital.com, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Be the first to comment