From 'DogeFather' to a Key Figure in the U.S. Government... Musk Truly Moves 'DOGE'

Dogecoin logo posted on the Department of Government Efficiency website/Photo=DogeDesigner X(X)

The most notable figure in Donald Trump's second administration is undoubtedly Elon Musk, the CEO of Tesla. Musk is leading the 'Department of Government Efficiency (DOGE)' in the Trump administration, focusing on improving government operational efficiency and cutting federal budgets.

Musk's Department of Government Efficiency has garnered significant attention from the virtual asset (cryptocurrency) industry since its inception. The abbreviation 'DOGE' is reminiscent of the popular meme coin 'Dogecoin (DOGE)', which Musk has long supported. In fact, Dogecoin rose over 16% recently after the Dogecoin logo was posted on the department's website.

The phenomenon of Dogecoin's price moving in response to Musk's actions has been ongoing for quite some time. Known as the 'DogeFather' and a prominent pro-cryptocurrency figure in the Trump administration, Musk's enduring connection with Dogecoin is noteworthy.

"DOGE, My Favorite Coin"... Self-Proclaimed 'DogeFather' Musk

Photo=Elon Musk X(X)

Musk first mentioned Dogecoin in April 2019. At that time, he stated on his X (formerly Twitter) that "Dogecoin is my favorite cryptocurrency" and "it's really cool." Since then, he has mentioned Dogecoin several times on X. According to Decrypt, Dogecoin search volumes surged whenever Musk tweeted about it between 2019 and 2020.

On May 7, 2021 (local time), Dogecoin soared to an all-time high following news of Musk's appearance on SNL. Before his SNL appearance, he posted a composite photo with the Dogecoin mascot on his X, hinting at a mention of Dogecoin, and introduced himself as the DogeFather on the May 8 SNL broadcast.

Photo posted by Elon Musk before his SNL appearance/Photo=Elon Musk X(X)

However, contrary to expectations, Dogecoin plummeted nearly 30% after Musk's SNL broadcast. CNN speculated that the crash was due to Musk's comments that dashed investors' expectations. Investors hoped Musk would express support for Dogecoin on SNL, but he called Dogecoin a 'hustle.' Some analysts suggested that the excessive mockery of Dogecoin on the show contributed to the price drop.

Following the SNL aftermath, on May 10, 2021, Musk announced a collaboration between SpaceX and Dogecoin. He planned a lunar satellite mission called 'Doge-1,' which would be paid for entirely with Dogecoin. Upon the announcement, Dogecoin surged by about 20%.

In December 2021, Tesla began accepting Dogecoin as a payment method for some products. This decision led to a nearly 15% increase in Dogecoin. At the time, Bitcoin was excluded from Tesla's payment options due to its high carbon emissions during mining, drawing more attention to Dogecoin.

Additionally, in May 2022, Musk announced that SpaceX's internet service 'Starlink' would consider accepting Dogecoin for subscription fees in the future, continuing his support for Dogecoin. His statement led to a roughly 10% rise in Dogecoin, which had been in a downtrend.

DogeFather Becomes a Key Figure in the Trump Administration... Focus on Pro-Cryptocurrency Moves

Photo=Shutterstock

Musk, who has consistently shown 'sincerity' towards Dogecoin, has now become a key figure in the Trump administration. On his first day in office, President Trump issued an executive order renaming the 'U.S. Digital Service' to the 'U.S. Doge (DOGE) Service' and installed DOGE in the Oval Office.

Currently, Musk's DOGE is exerting more influence than expected. Since the launch of Trump's second administration, it has already reviewed key data from several federal agencies and conducted extensive personnel and spending cuts by examining budget expenditures.

According to the New York Times on the 1st (local time), DOGE and its associates have gained access to the Treasury's payment system, which controls the annual $5 trillion federal budget expenditure. The U.S. Treasury payment system handles information for millions of Americans receiving pensions, tax refunds, and salaries from the federal government, and gaining access to it is considered a significant authority.

Some are concerned that Musk might overreach his authority, but President Trump defended Musk at a White House press conference, saying, "I think Elon is doing a great job." He also stated that Musk would not unilaterally halt government budgets without White House approval.

With Trump's backing, Musk's future actions in the U.S. government are drawing attention. Recently, Bloomberg reported, citing sources, that DOGE is currently exploring ways to utilize blockchain to enhance U.S. government efficiency. It is known that they have met with representatives of several public blockchains to evaluate their technologies.

Of course, it is not yet known which blockchain will be used, and the possibility of the plan being scrapped cannot be ruled out. However, Bloomberg raised expectations by stating that if DOGE pursues the plan, "it could become the largest government project ever seen in the U.S."

The impact on the virtual asset market is also noteworthy. Kim Dong-hyuk, a Dispread Researcher, stated, "If Musk's DOGE introduces public blockchain into government operations, the related blockchain and virtual assets are expected to benefit greatly," but added, "The actual possibility of adoption may be low, and there is a higher likelihood of a consortium blockchain being applied."