What Happens To Dogecoin If Twitter Fails To Implement Crypto Plans?

Dogecoin prices have been rising with Elon Musk buying Twitter, which has been a bullish sign. The expectation that Musk would integrate the cryptocurrency into his social media platform, which Musk has previously publicly supported, continues to keep it at such high levels even in bear markets. Musk has yet to indicate that he will do this, so what happens if the crypto is not integrated into Twitter?

Twitter Announces Its Dropping Crypto Plans

Elon Musk’s ownership of Twitter has come with a lot of expectations, especially among crypto investors. Initial impressions were that Musk intended to continue with his plans to make crypto an integral part of Twitter. With news from the stock exchange on Friday, this is changing.

Twitter announced that it has stopped developing its crypto wallet features. The product, which would have enabled users to store and send cryptocurrency through Twitter, has been canceled by the company following massive layoffs.

The social media platform reportedly reduced its staff by half on Thursday and will now focus its efforts on new products, including Musk’s $8 verification fee. 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.

Dogecoin price chart from TradingView.com

DogeUSD drops 25% after 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 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.

Dogecoin’s price dropped 10% on Friday after news broke that Twitter was suspending its development of a crypto wallet. While the vast majority of market participants were seeing the green side by side, DOGE plunged along with the Twitter stock prices which are currently at $53.85 before the opening of trading.

DOGE’s price would fall further if Twitter does not make public any definitive plans. This also extends to the addition of DOGE as a payment method in the “Tip Jar” feature. Already, the meme coin lost more than 25% from Tuesday’s highs. The market could experience more volatility as it heads into the weekend.

Capital.com's featured image. Chart by TradingView.com

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