Skeleton Test 3

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 department's abbreviation 'DOGE' is reminiscent of the popular meme coin 'DogeCoin (DOGE)', which Musk has long supported. In fact, DogeCoin recently rose by more than 16% after the DogeCoin logo was posted on the department's website.

The phenomenon of DogeCoin prices 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 'Doge Father' and has become a prominent pro-cryptocurrency figure in the Trump administration, and DogeCoin.

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

Musk first mentioned DogeCoin in April 2019. At the time, he stated on his X (formerly Twitter), "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 volume surged whenever Musk tweeted about it from 2019 to 2020.

On May 7, 2021 (local time), DogeCoin surged to an all-time high due to Musk's upcoming SNL appearance. Before his SNL appearance, he hinted at mentioning DogeCoin by posting a composite photo with the DogeCoin mascot on his X, and on the May 8th broadcast of SNL, he introduced himself as the Doge Father.

However, contrary to expectations, DogeCoin plummeted by nearly 30% after Musk's SNL broadcast. CNN speculated that the crash was due to Musk's comments that disappointed 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 exploration satellite 'Doge-1' to be paid entirely in DogeCoin. Following the announcement, DogeCoin surged by about 20%.

In December 2021, DogeCoin was allowed as a payment method for some Tesla products. This decision led to DogeCoin rising by nearly 15%. At the time, Bitcoin was excluded from Tesla's payment methods due to high carbon emissions during mining, drawing more attention.

In May 2022, Musk continued his support for DogeCoin by announcing that SpaceX's internet service 'Starlink' would consider allowing subscription fees to be paid in DogeCoin in the future. Following his remarks, DogeCoin, which was in a bearish trend, rose by about 10%.

Doge Father Becomes a Key Figure in the Trump Administration... Focus on Pro-Cryptocurrency Actions

Musk, who has consistently shown genuine interest in DogeCoin, has now become a key figure in the Trump administration. President Trump renamed the 'U.S. Digital Service', a presidential agency, to the 'U.S. Doge (DOGE) Service' through an executive order on his first day in office 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 materials from several 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 Department's payment system, which controls the annual federal budget expenditure of $5 trillion. The U.S. Treasury payment system handles information for millions of Americans receiving pensions, tax refunds, salaries, etc., from the federal government, and gaining access to it is considered to have substantial authority.

Some are concerned that Musk may overreach his authority, but President Trump defended Musk at a White House press conference, saying, "I think Elon is doing a good job," and added that he would not unilaterally suspend government budgets without White House approval.

Attention is focused on what actions Musk, who has gained wings through Trump, will take in the U.S. government. Recently, Bloomberg reported, citing sources, that DOGE is currently reviewing ways to utilize blockchain to improve 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 is likely to be 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, said, "If Musk's DOGE introduces public blockchain into government operations, the blockchain and related virtual assets are expected to benefit greatly," adding, "However, the actual possibility of introduction may be low, and there is a high possibility that a consortium blockchain rather than a public blockchain will be applied."