Author: Zen, PANews

On November 13, Beijing time, U.S. President-elect Donald Trump announced on his "Truth Social" platform that Elon Musk and Vivek Ramaswamy would lead the Department of Government Efficiency (DOGE). He compared the mission of this department to the Manhattan Project during World War II and described it as a core part of the "Save America" movement.

The main goal of DOGE is to significantly reduce the "waste and fraud" in the U.S. government's annual budget of $6.5 trillion. The department is expected to operate independently but will collaborate extensively with the White House and the Office of Management and Budget to guide structural reforms. In the announcement, Trump confidently stated that by July 4, 2026 (the 250th anniversary of the founding of the United States), America would "become a smaller, more efficient government with less bureaucracy."

Since Trump's victory, his top supporter Musk has become the second biggest winner after Trump himself, not only seeing a significant increase in his assets, maintaining his position as the world's richest person, but also witnessing the rise of Dogecoin (DOGE) (for clarity, all DOGE mentioned below will refer to "Dogecoin"), the Department of Government Efficiency (DOGE, abbreviated hereafter), and cryptocurrencies themed around him, such as X Empire (X).

According to CoinMarketCap data, as of November 14, Dogecoin has risen over 107% in the past week, reaching nearly $0.43 around 5 PM on November 12, the highest point in over three years. Additionally, Musk has recently been using his personal influence to spread the story of the euthanized internet celebrity squirrel Peanut, and with Musk commenting, "America is saved by a squirrel and meme coins," the price of Peanut the Squirrel (PNUT) has surged from around $0.01 on November 7 to $2.02, with a market cap exceeding $2 billion.

However, after the announcement of the establishment of the Department of Government Efficiency, despite Musk continuously posting about this "good news" on X or interacting with others, even claiming, "We finally have the power to eliminate cumbersome regulations that are detrimental to the public interest," the calls for Dogecoin to reach $1 have been numerous on X, but Dogecoin has not continued the previous high momentum, fluctuating around $0.4. Meanwhile, the newly launched DOGE token in August, with a smaller market cap, doubled in price within 12 hours, surpassing a market cap of $450 million.

"Carefully Planned" D.O.G.E

On August 13 of this year, Trump and Musk connected for a live broadcast on X, attracting significant global attention as the two political and business heavyweights "joined forces." "I think we need a government efficiency committee to determine where it is reasonable to spend money and where it is unreasonable," Musk suggested to Trump during the call, stating, "We need to live within our means."

A few days later, Musk posted what appeared to be an AI-generated photo on X, showing him standing at a podium labeled "Department of Government Efficiency," captioned "I am willing to serve." This was the first formal mention of the department. The acronym for this special agency, D.O.G.E, seems to indicate Musk's intention to link his new political role with the cryptocurrency he helped promote.

However, at this time, the cryptocurrency market was in a slump, and the question of who would occupy the presidential seat remained unresolved. Therefore, Musk's "promotion" did not receive a market response, and the price of Dogecoin did not see a significant increase. Cryptocurrency KOL @IncomeSharks commented below, "Elon’s tweets about $DOGE no longer even affect the price."

In early September, Trump publicly agreed to Musk's request. Among a series of new economic plans he announced, one was to establish a government efficiency commission. He stated that once elected back to the White House, Musk would lead this commission, responsible for conducting a comprehensive financial and performance audit of the entire federal government and proposing significant reform recommendations.

However, in Trump's recently released announcement, he actively cooperated with Musk, referring to the department as D.O.G.E. It should be noted that D.O.G.E is not an official government department; Trump stated that Musk and Ramaswamy would provide "advice and guidance" to the White House from outside the government. It remains unclear how this organization will operate. It may be governed by the Federal Advisory Committee Act, which outlines how external groups providing advice to the government must operate and be accountable to the public.

Notably, the other leader of the department, former presidential candidate Vivek, is considered one of the biggest contributors to Trump's and the Republican Party's shift in stance on cryptocurrencies. Since January of this year, he has been advising Trump on Bitcoin and digital assets, gaining increasing influence within core circles. Vivek has also suggested that the dollar should be backed by a basket of commodities, and over time, Bitcoin might also be included.

New Agency May Have Negative Impact on DOGE Token?

Given Musk's strong support for DOGE as a meme and asset, the industry generally believes that his involvement with DOGE could be a good omen for the memecoin and even the cryptocurrency industry. Recently, Musk's frequent interactions with DOGE-related tweets on X seem to confirm this.

However, many believe that Musk's actions may have a negative impact on Dogecoin. Freelance journalist Connor Sephton stated in an article that after reading the endless reports about the DOGE department, he believes this could ultimately have a catastrophic impact on Dogecoin's visibility. If this government project gains brand recognition and is widely reported, it could overshadow Dogecoin's exposure.

"Musk posts countless tweets to his 204 million followers every day, sometimes about X, sometimes about SpaceX. Among them are some poor jokes or misinformation. But in recent months, he has hardly mentioned cryptocurrencies, and mentions will likely decrease in the future," Sephton stated. He believes Musk is transitioning from someone who jokes on X to a figure who directly influences world events and affects the lives of millions of Americans. Although Musk's new role is positioned as an external government role, he is highly valued by the president, as evidenced by his conversations with Ukrainian President Zelensky alongside Trump.

Sephton further added, "If you peel back the layers of Musk, it’s easy to see why he was initially so fascinated by Dogecoin: he wanted influence. He can change the market with a single sentence, and that in itself fascinates him." He believes Musk's influence has now reached its peak, meaning he can focus on larger goals: power. The Department of Government Efficiency marks the beginning of his political ambitions, and in the coming months and years, he will undoubtedly seek greater influence. All of this suggests that DOGE, the cryptocurrency, has become somewhat redundant for Musk, and he may set it aside to focus on the next big thing.

Additionally, whether the DOGE led by Musk can play a positive role in the Trump administration has raised concerns among many. Pessimistically, if the agency ultimately becomes "notorious," Dogecoin itself may also be affected. Its appointment has already faced criticism from citizen public interest organizations, a progressive consumer rights NGO that has questioned several policies from Trump's first term. "Musk knows nothing about government efficiency and regulation, and his own companies often violate the rules he is about to crack down on," stated co-chair Lisa Gilbert in a statement.

Ulrich Leuchtmann, head of foreign exchange and commodity research at Deutsche Bank, is also pessimistic about DOGE's prospects, even suggesting it could have catastrophic consequences for the U.S. economy: "Musk does not believe in gradual, cautious approaches. I do not believe he can take a wise step. Some might say their recommendations are just that—recommendations, and there are still the president and Congress in front of actual implementation. But if the recommendations are not going to be implemented, then why establish such an agency? The president would appear indecisive, which is exactly what Trump does not want to see."

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