Dogecoin investors watch out: Twitter and Elon Musk stop crypto wallet development – DOGE drops sharply

  • Since Musk’s Twitter takeover, DOGE’s price has surged by over 200 percent.
  • A Bloomberg report claims that Musk plans to lay off over 50 percent of social network staff.

According to multiple reports, social media platform, Twitter, has paused plans to create a crypto wallet following a raft of changes in the platform’s structure. New Twitter owner, Elon Musk, has been making several changes to Twitter since completing his takeover of the social platform. As a result, one report read, “the plan to build a Twitter crypto wallet is now on ice.”

The price of the meme-themed coin DOGE dropped by nearly 10 percent following the news. DOGE has consistently trended positively or negatively each time Musk makes any pronouncement or takes crypto-related actions. Musk has never hidden his love for the meme-themed crypto asset.

As Musk completed his Twitter takeover last week, DOGE’s price spiked by more than 200 percent. It reached a peak price as it did in April, fueling optimism that Musk might launch crypto-favorable programs on Twitter.

Is this Musk’s Twitter plan?

A Bloomberg report on Thursday cited sources familiar with the matter and claimed that the social platform will still lay off more staff members. Musk fired the platform’s chief executive and other top-level executives this past week. However, the world’s richest man reiterates that the changes will continue till he achieves his vision for the platform.

Follow us for the latest crypto news!

Twitter has yet to issue any official statement regarding developing a crypto wallet. Furthermore, the platform has not granted any media interviews or answered any questions from the media regarding the matter.

As the massive layoffs continue, Twitter’s physical offices remain closed as of Friday morning. While some Twitter staff won’t mind the severance package with the dismissal, others plan to seek redress in court.

Meanwhile, attorney Shannon liss-Riordan has filed a class-action lawsuit against Twitter on behalf of the affected staff. The lawsuit claims that Twitter violated the Worker Adjustment and Retraining Notification (WARN) act following the sacking of many of its employees.

Under the warn act in California’s labor laws, employers must give a 60-day notice to employees likely to be affected by a mass sacking. If the court finds Twitter guilty of violating the warn act, the platform would have to pay billions in compensation and benefits to the affected staff.

Nevertheless, a subsidiary of the US Treasury, CFIUS, is considering whether it has the clearance to investigate Musk’s Twitter takeover. DOGE price remains downward following the news of a pause on Twitter crypto wallets.

According to our data, the meme-themed coin is down 3.02 percent in the last 24 hours and trades at $0.127. Similarly, the MASK token is down by 20 percent. This token is one many speculate Twitter would use to support crypto payments.