On November 13, at 9:30 am, Trump announced the appointment of Elon Musk to lead the Department of Government Efficiency (DOGE), in order to eliminate government bureaucracy, reduce over-regulation, cut wasteful spending, and restructure federal agencies. Subsequently, Musk also released the logo for the Department of Government Efficiency and stated "Let's make the government more fun".
Since then, a 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 Progenitor of Meme Coins: DOGE
DOGE (Department of Government Efficiency) shares the same name as the meme coin Dogecoin.
Dogecoin (DOGE), as the elder statesman of meme coins, was inspired by the then-popular "Doge" meme (based on a Shiba Inu dog 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 parody the speculative frenzy in the cryptocurrency market at the time. Dogecoin was an immediate success, receiving a warm welcome on websites like Reddit and even being used as a tipping currency.
Musk also has a deep connection with Dogecoin. In April 2019, Musk tweeted that Dogecoin was his favorite cryptocurrency, calling it "pretty 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 intertwined with Dogecoin, even becoming the public face of the Dogecoin brand.
To this day, DOGE has weathered four bull-bear cycles, yet still sits firmly in the top ten of the cryptocurrency market cap.
However, the protagonist of today's story is not DOGE, but the government department "DOGE" that shares its name.
The Origins of DOGE
The story begins on August 20 this year, when Trump announced that if he were to be elected president, he would appoint Musk to a cabinet position or as a government advisor.
While the public was debating Musk's potential role, the Twitter account "Sir Doge of the Coin" responded that Musk could serve as the head of the Department of Government Efficiency (DOGE). This post caught Musk's attention, and he retweeted it, saying "This is a perfect name".
From that point on, the story of DOGE unfolded alongside the election process. On October 26, in Pennsylvania, Musk likened the government's opaque financial spending to a swamp, and stated:
"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 spending is calculated."
"We need to reduce spending. If someone has a better way to reduce spending, 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 stated in a speech on September 6 that he would establish a "Department of Government Efficiency" led by Musk if elected.
With the dual efforts of Trump and Musk, a grassroots movement and fan-made content around the Department of Government Efficiency (DOGE) has been flourishing.
Americans have begun to recognize the importance of government efficiency, with social media flooded with criticism of government resource waste: "A U.S. Treasury report found $24.5 billion in 'unmatched transactions' last year", "Agriculture Department employees abused government-issued credit cards, spending millions on concert tickets, tattoos, lingerie, and personal vehicles", "A study on transgender monkeys cost $16 million".
Whether on X, Instagram, or TikTok, if you're interested in politics and the election, you can see a constant stream of content related to government efficiency. At this point, DOGE is no longer just a name shared with Dogecoin, but a powerful weapon and cultural symbol in the election process, representing Trump supporters' opposition to the Democratic Party's financial opacity and mismanagement of government spending.
The Biggest Alpha of This Bull Market: The Musk Trade
In this cycle, the "Musk trade" appears particularly important. Unlike the "Trump trade" which was more tilted towards the stock market and cryptocurrencies of the era, the "Musk trade" is arguably the strongest alpha play after the election. Any cryptocurrencies associated with 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 seen by many investors as overvalued, with a poor price-to-value ratio compared to other "small-cap" meme coins. However, over the past 14 days, DOGE has seen a 120% gain, with a 96% rise in the past 7 days.
DOGE's strong performance is partly due to the market's general belief that Trump's victory in the election would be a huge boon for Musk-related concepts. Additionally, the potential benefits of Musk integrating Dogecoin into payment systems have also been a factor. It's also worth noting that on November 3, Robinhood Crypto enabled DOGE token transfers and withdrawals.
PNUT
The squirrel image of PNUT originates from a squirrel named "Peanut" that was adopted 7 years ago by an engineer named Mark. Mark frequently shared interactive videos with Peanut on Instagram, gradually amassing hundreds of thousands of followers.
However, a nearby resident filed a complaint with 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 Peanut away. Mark Longo then launched a petition on social media, which was signed by tens of thousands of supporters.
Unfortunately, Peanut was ultimately euthanized by the DEC. After Peanut's death, Dogecoin posted a message condemning the Democratic Party, and Musk also mourned Peanut's passing and stated that a Trump presidency would save Peanut.
This Peanut incident gradually evolved into a movement criticizing the Democratic Party. Meanwhile, numerous Peanut-themed memes emerged online, such as "the squirrel uprising while wearing a MAGA hat".
At this point, the animal image of Peanut has become more than just a social media celebrity's meme - it has taken on political overtones associated with "Trump". Today, Musk's tweet "America was saved by a squirrel and a meme coin" has caused a short-term surge of over 100% in PNUT.
DOGE
DOGE is the meme coin named after the Department of Government Efficiency that Musk is set to lead, and it has surged following Trump's announcement of Musk's appointment, reaching as high as 10x gains before gradually retracing.
DOGE and the "MAGA" coin share similarities - without continued narrative support, DOGE may also ultimately face the same "buy the rumor, sell the news" fate as the "MAGA" coin.
In the course of Crypto development, Musk and Doge are the brilliant stars of Web3. Nowadays, Musk is also cleverly linked to Doge because of Doge, adding a mysterious and unique color to Musk's political career and the crypto world itself.
