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How did the 500 Billion Dogecoin make Musk join the new US gov department?

How did the 500 Billion Dogecoin make Musk join the new US gov department?

BlockBeatsBlockBeats2024/11/13 09:40
By:BlockBeats

Trump and Musk's Meme Collaboration

On November 13th, at 9:30 AM, President Trump released a statement announcing the appointment of Elon Musk to lead the Department of Government Efficiency (DOGE) to eliminate government bureaucracy, reduce overregulation, cut wasteful spending, and reorganize federal agencies. Subsequently, Musk also unveiled the logo of the Department of Government Efficiency and stated, "Make government fun again."


Since then, a newly established government department named after a memecoin has emerged on the American political stage. So where did the Department of Government Efficiency, or "DOGE," come from?


The Origin and Evolution of the Department of Government Efficiency


The Meme Coin Pioneer: DOGE


The Department of Government Efficiency (DOGE) shares its name with the meme coin forefather Dogecoin.


As a pioneer of memecoins, Dogecoin drew inspiration from the popular "Doge" meme (originally based on a Shiba Inu named Kabosu). Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer, who aimed to develop a light-hearted cryptocurrency to satirize the hype surrounding the cryptocurrency market at that time. Dogecoin saw immediate success upon its launch, receiving a warm welcome on sites like Reddit and being used as a tipping currency.


Moreover, Musk has had a significant association with Dogecoin. In April 2019, Musk tweeted that Dogecoin was his favorite cryptocurrency, stating that Dogecoin was "pretty cool." In a May 2021 episode of Saturday Night Live, Musk referred to himself as the "Dogefather" and dubbed Dogecoin the "people's cryptocurrency." Over time, Musk became increasingly intertwined with Dogecoin, even becoming a prominent figure associated with Dogecoin in the public eye.


As of now, DOGE has experienced four bull-bear cycles but still holds a firm position in the top ten cryptocurrencies by market capitalization.


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However, today's focus is not on DOGE but on the government department named after DOGE, the Department of Government Efficiency, or "DOGE."


The Origin of D.O.G.E.


The story began on August 20th of this year, when Trump announced that if elected president, he would appoint Musk to his cabinet or as a government advisor. Just as the outside world was speculating about Musk's potential role, the Twitter account of Sir Doge of the Coin responded suggesting that Musk could head the Department Of Government Efficiency, abbreviated as "DOGE." Subsequently, Musk noticed and retweeted this post, stating "This is a perfect name."


From that moment on, the story of DOGE began to unfold as the election process progressed. On October 26th, in Pennsylvania, Musk likened the government's opaque financial expenditures to a swamp and mentioned, "We (DOGE) will be very open and transparent about what we're doing with the government's efficiency department, where the issues are, and how the calculations are made for spending," adding, "We need to reduce spending. If someone has a better way to reduce spending, please let us know. But if we don't, we will go bankrupt. So, we have to do something. And we have to take some fairly big steps."


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Not only did Musk himself express his views on the "Department of Government Efficiency" in several speeches, but Trump also heeded Musk's advice. Trump once stated in a speech on September 6th that he would establish the "Department of Government Efficiency" after being elected and have Musk lead the department's work.


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With Trump and Musk shuttling back and forth, second creations and mass movements based on the Department of Government Efficiency (DOGE) background began to gain momentum. Americans started to realize the "importance of government efficiency," and social media was filled with denunciations of government waste: "The U.S. Treasury Department reports that there were $24.5 billion in 'unverified transactions' in the past year," "Department of Agriculture employees abused government-issued credit cards, spending millions of dollars on concert tickets, tattoos, lingerie, and cars," and "Transgender monkey research cost $33.2 million." Whether on X, ins, or TikTok, if you care about politics and the election, you can see an abundance of works related to government efficiency constantly emerging. From then on, DOGE became more than just sharing a namesake with Dogecoin; it became a potent weapon and cultural symbol for Trump supporters in the election process, opposing the Democratic Party's financial opacity and government spending mismanagement.


The Biggest Alpha of This Bull Run: Musk Trade


During this cycle, the "Musk Trade" has proven to be particularly significant. Unlike the "Trump Trade," which leaned more towards the era of stocks and crypto, the "Musk Trade" is almost the strongest alpha to emerge post-election. Any cryptocurrency related to Musk, such as DOGE and PNUT, has been leading the crypto market after the election.


DOGE


As the largest market-cap meme coin, DOGE is perceived by most investors as having an inflated market cap and not as cost-effective as other "small-cap" meme coins. However, in the past 14 days, DOGE has seen a 120% increase, with a 96% increase in the last 7 days. DOGE's outstanding performance is attributed to Musk's strong support for Trump in the election, with the market widely believing that a Trump victory would be a huge positive for Musk-related concepts. Additionally, Musk's potential integration of Dogecoin into the payment system is seen as a major advantage. Meanwhile, it is worth noting that on November 3rd, Robinhood Crypto has enabled transfers and deposits/withdrawals of DOGE tokens.


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PNUT


The squirrel image of PNUT originated from a squirrel named "Peanut" adopted by an engineer named Mark seven years ago. Mark frequently shared interaction videos between him and Peanut on Instagram, gradually accumulating hundreds of thousands of followers. However, local residents complained to the New York State Department of Environmental Conservation (DEC) that Peanut was carrying a contagious disease. Surprisingly, the DEC raided Mark Longo's home without a search warrant and took Peanut away. Subsequently, Mark Longo initiated a petition on social media, gathering tens of thousands of signatures. Unfortunately, Peanut was eventually euthanized by the DEC. After Peanut's euthanasia, Dogecoin condemned the Democratic Party in a post, and Musk mourned Pnut in a post, claiming that Trump's presidency would save Peanut.


The Peanut incident gradually evolved into a movement criticizing the Democratic Party. Simultaneously, numerous Peanut derivative works started circulating online, such as "squirrels wearing MAGA hats for rebellion." Consequently, the animal image represented by Peanut transformed from being just an internet-famous meme to incorporating a buff with a "Trump" political hue. Today, Musk tweeted, "America was saved by a squirrel and a meme coin," causing PNUT to surge over 100% briefly.


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D.O.G.E


D.O.G.E is a meme coin named after the Department of Government Efficiency, which exists on Ethereum and is associated with Musk's tenure. Today, following Trump's announcement of Musk's appointment, it surged. It has seen a peak increase of 10x and is now gradually falling back. D.O.G.E shares similarities with the "MAGA" coin and, without subsequent narrative support, is likely to end up like the "MAGA" coin, experiencing a "buy the rumor, sell the news" outcome.


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In the course of Crypto's development, Musk and DOGE are both shining stars of Web3. Today, Musk is intricately linked to D.O.G.E through DOGE, adding a mysterious and unique color to Musk's political career and the crypto world itself.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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