Twitter has reportedly shelved plans to build a crypto wallet, amplifying Dogecoin losses after a bountiful bull run last week.
According to a report by tech blogger Casey Newton, the decision to set aside the wallet was part of the company’s restructuring plan initiated by its new owner Elon Musk. “A recently revealed plan to build a crypto wallet for Twitter appears to be on pause,” the platformer wrote Thursday.
Musk’s decision comes barely a month after the plan was leaked. On October 24, Jane Manchun Wong, a tech blogger specialising in reporting to-be-launched tech features, confirmed that a crypto “wallet prototype” was under development without disclosing when it was expected to launch or which cryptocurrencies it would support.
Even before the reveal, Twitter has been supporting cryptocurrencies. Before stepping down from his CEO position last November, Jack Dorsey oversaw the launch of a feature that allows users to tip content creators with Bitcoin, with Ethereum being added in early 2022. The company recently launched a feature that enables users to display their non-fungible tokens (NFTs) on their profile pictures. On October 27, the firm announced it was testing “NFT tiles”- a feature enabling creators to display which marketplaces their NFTs can be bought.
Moreover, with Musk at the helm now, most investors expected the wallet to play an essential role once Dogecoin is integrated with Twitter, propelling the platform towards becoming a fully-fledged Web3 platform. Following the reveal, Dogecoin plunged almost 10% pre-market on Friday.
Last week, DOGE surged by over 160% to tap $0.15 after the billionaire expressed interest in closing the $44 billion purchase. However, the token’s price retreated sharply over the weekend, dragging on for most of this week as Musk embarked on various reforms, including reviewing monthly subscription fees for Twitter’s certified users to $8, up from the previous $3. This week, Musk also sacked Twitter’s CEO and other top executives with more mass layoffs expected in the coming days to place the company on a healthy path.
At the time of writing, Dogecoin was trading at $0.12 after a 4.65% drop in the past 24 hours based on CoinMarketCap data.