Skeleton Test 13

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' for the department reminds many of the popular meme coin 'DogeCoin (DOGE)', which Musk has long supported. In fact, DogeCoin rose by 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. We look back at the enduring relationship between Musk, who calls himself the 'DogeFather' and has become a prominent pro-crypto figure in the Trump administration, and DogeCoin.

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

Musk first mentioned DogeCoin directly 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 multiple 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 SNL broadcast aired on the 8th.

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

On May 10, 2021, before the aftermath of SNL had subsided, Musk announced a collaboration between SpaceX and DogeCoin. He planned a lunar satellite mission called 'Doge-1', to be paid entirely in DogeCoin. Following the announcement, DogeCoin surged by about 20%.

In December 2021, DogeCoin was accepted as a payment method for some Tesla products. This decision led to a nearly 15% rise 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 the decision.

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. Following his remarks, DogeCoin, which had been in a bearish trend, rose by about 10%.

DogeFather Becomes a Power Player in the Trump Administration...Focus on Pro-Crypto Moves

Musk, who has consistently shown genuine interest in DogeCoin, has now become a power player in the Trump administration. President Trump, through an executive order on his first day in office, renamed 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 reviewed key data from various federal agencies and investigated budget expenditures, leading to significant personnel and spending cuts.

According to the New York Times (NYT) 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 have raised concerns about Musk potentially overstepping his bounds, but President Trump defended Musk at a White House press conference, saying, "I think Elon is doing a good job," and assured that Musk would not unilaterally halt government budgets without White House approval.

There is keen interest in what actions Musk, now empowered by Trump, will take within the U.S. government. 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 clear 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 proceeds with 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 researcher at Dispread, stated, "If Musk's DOGE introduces public blockchain into government operations, the related cryptocurrencies are expected to benefit greatly," but added, "However, the actual possibility of implementation may be low, and there is a higher likelihood of a consortium blockchain being applied rather than a public blockchain."