Recently, Dogecoin has once again become the focus of attention. Trump announced the appointment of Musk as the head of the newly established "Department of Government Efficiency", a department that shares the name of Dogecoin, which has sparked a craze around Dogecoin. This article will explore the origin of the department, the connection between Musk and Dogecoin, and the impact of this event on the cryptocurrency market.
This article is from a piece written by Alray of the New World, compiled and translated by BlockTempo.
(Background: Trump Announces Musk to Lead Government Efficiency Department DOGE: Dismantle Bureaucracy, Doge Logo Exposed)
(Additional Background: Will Musk's "DOGE Efficiency Committee" Lead to the Largest Layoff in U.S. Government History? Also Wants to Abolish the Federal Reserve?)
1 On January 13, at 9:30 am, Trump released an announcement appointing Elon Musk (Elon Musk) to lead the Department of Government Efficiency (abbreviated as "DOGE"), in order to eliminate government bureaucracy, reduce over-regulation, cut wasteful spending, and restructure federal agencies. Subsequently, Musk also released the logo of the Department of Government Efficiency and stated that he would "make the government more interesting".
Since then, a brand-new government department named after a memecoin has appeared on the American political stage. So where does the "DOGE" department come from?
The Past and Present of the "DOGE" Department
The Patriarch of meme Coins: DOGE
DOGE (Department of Government Efficiency) shares the same name as the grandfather of meme coins, Dogecoin.
Dogecoin (DOGE), as the elder statesman of meme coins, was inspired by the then-popular "Doge" meme (the prototype being a Shiba Inu named Kabosu).
Dogecoin was established in 2013 by software engineers Billy Markus and Jackson Palmer, who hoped to create a lighthearted and fun cryptocurrency to satirize the speculative frenzy in the cryptocurrency market at the time. Dogecoin was an immediate success after its launch, receiving enthusiastic welcome on websites like Reddit, and was even used as a tipping currency.
At the same time, Musk also has a deep connection with Dogecoin. In April 2019, Musk tweeted that Dogecoin was his favorite cryptocurrency, and he thought Dogecoin was "cool".
In the May 2021 episode of "Saturday Night Live", Musk referred to himself as the "Dogefather" and called Dogecoin the "people's cryptocurrency". Over time, Musk has become deeply associated with Dogecoin, even becoming the public face of the Dogecoin image in the public consciousness.
To this day, DOGE has gone through 4 bull-bear cycles, but still sits firmly in the top 10 of the cryptocurrency market cap.
However, the protagonist of today's story is not DOGE, but the government department "DOGE" that shares the same name.
The Origin of D.O.G.E.
The story begins on August 20 this year, when Trump announced that if he is successfully elected president, he will appoint Musk to a cabinet or government advisory position.
While the outside world was debating Musk's potential position, the Twitter account of Sir Doge of the Coin responded that Musk could serve as the Department Of Government Efficiency (DOGE). Subsequently, this post caught Musk's attention and he retweeted it, saying "This is a perfect name".
Since then, the story of DOGE has unfolded along with the election process. On October 26, in Pennsylvania, Musk likened the government's opaque financial expenditures to a swamp, and said:
"We (DOGE) will be very open and transparent, and very clearly explain what we are doing with the Department of Government Efficiency, what the problems are, and how the expenditures are calculated."
"We need to reduce expenditures. If anyone has a better way to reduce expenditures, please tell us. But if we don't do this, we will go bankrupt. So we have to do something. And we have to take some pretty big measures."
Not only has Musk himself expressed his views on the "Department of Government Efficiency" in multiple speeches, but Trump has also heeded Musk's advice. Trump had stated in a speech on September 6 that he would establish a "Department of Government Efficiency" and have Musk lead the work of the department if elected.
With the joint efforts of Trump and Musk, the secondary creation and grassroots movement around the background of the Department of Government Efficiency (DOGE) have been in full swing.
Americans are beginning to realize the "importance of government efficiency," with social media flooded with criticism of government resource waste: "The U.S. Treasury Department reported that there were $24.5 billion in 'unmatched transactions' over the past year," "Department of Agriculture employees abused government-issued credit cards, spending millions of dollars on concert tickets, tattoos, lingerie, and personal items," "A study on transgender monkeys cost $33.2 million."
Whether on X, ins or tiktok, if you are interested in politics and the election, you can see a constant stream of works related to government efficiency. Since then, DOGE has not only been just a namesake of Dogecoin, but has also become a powerful weapon and cultural symbol in the election process, with Trump supporters opposing the Democratic Party's lack of financial transparency and the chaos in government spending management.
The biggest Alpha of this bull market: Musk trade
In this cycle, the "Musk trade" seems particularly important. Unlike the "Trump trade" which was more inclined towards the US stock and crypto era β, the "Musk trade" is the strongest alpha after the election. Any cryptocurrencies related to Musk, such as DOGE and PNUT, have been leading the crypto market since the election.
DOGE
As the largest meme coin by market cap, DOGE is considered by most investors to have an overly large market cap and a poor price-to-performance ratio compared to other "small-cap" meme coins. However, over the past 14 days, DOGE has achieved a 120% increase, with a 7-day increase of up to 96%.
The excellent performance of DOGE is partly due to Musk's support for Trump in the election, with the market generally believing that Trump's victory would be a huge boon for Musk-related concepts. On the other hand, it is due to the potential benefits of Musk applying Dogecoin to the payment system. It is also worth noting that on November 3, Robinhood Crypto has supported the transfer and deposit/withdrawal of DOGE tokens.
PNUT
The squirrel image of PNUT originates from a squirrel named "Peanut" adopted by an engineer named Mark 7 years ago. Mark often shares interactive videos with Peanut on IG and has gradually gained hundreds of thousands of followers.
However, nearby residents complained to the New York State Department of Environmental Conservation (DEC), claiming that Peanut carried infectious diseases. Surprisingly, the DEC raided Mark Longo's home without a search warrant and took away Peanut. Mark Longo then launched a petition on social media, which was signed by tens of thousands of fans.
Unfortunately, Peanut was ultimately euthanized by the DEC. After Peanut's euthanasia, Dogecoin condemned the Democratic Party, and Musk also posted a tribute to Pnut and claimed that Trump's election would save Peanut.
This Peanut incident has gradually evolved into a campaign against the Democratic Party. At the same time, a large number of Peanut derivative works have appeared online, such as "the squirrel wearing a MAGA hat leading the uprising".
Since then, the animal image represented by Peanut has not only been a meme of a social media celebrity, but has also started to overlay with the political color of "Trump". Today, Musk tweeted "America was saved by a squirrel and a meme coin," causing PNUT to surge over 100% in the short term.
D.O.G.E
D.O.G.E is a meme coin named after the Department of Government Efficiency that Musk is employed at, and it surged after Trump released Musk's employment statement today. It has already reached a peak of 10 times the increase, and is now gradually declining.
D.O.G.E and the "MAGA" coin have something in common - if there is no subsequent narrative support, then it will ultimately end up with the same "good news is bad news" fate as the "MAGA" coin.
In the development of Crypto, Musk and DOGE are both shining stars of Web3. Now Musk has cleverly linked himself and D.O.G.E together because of DOGE, adding a mysterious and unique color to Musk's political career and the crypto world itself.
