Skeleton Test 6

The most notable figure in Donald Trump's second-term administration is undoubtedly Elon Musk, CEO of Tesla. Musk is leading the 'Department of Government Efficiency (DOGE)' in the Trump administration, focusing on improving government operational efficiency and reducing 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 rose by more than 16% recently after the Dogecoin logo was posted on the department's website.

The phenomenon of Dogecoin's price moving in tandem with Musk's actions has been ongoing for quite some time. Musk, self-proclaimed 'Doge Father' and a prominent pro-cryptocurrency figure in the Trump administration, has a long-standing connection with 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 volumes surged every time Musk tweeted about it between 2019 and 2020.

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

However, contrary to expectations, Dogecoin plummeted by nearly 30% after Musk's SNL broadcast. At the time, CNN speculated that the crash was due to Musk's remarks that dashed 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 broadcast 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 its 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 accepting Dogecoin as a subscription payment method in the future. Following his remarks, Dogecoin, which had been in a bearish trend, rose by about 10%.

Doge Father becomes a 'power player' in the Trump administration...Focus on pro-cryptocurrency actions

Musk, who has consistently shown 'sincerity' towards Dogecoin, has now become a power player in the Trump administration. From his first day in office, President Trump renamed the 'U.S. Digital Service', a presidential agency, to the 'U.S. Doge (DOGE) Service' and installed DOGE in the Oval Office through an executive order.

Currently, Musk's DOGE is exerting a broader influence than expected. Since the launch of Trump's second-term administration, it has already reviewed key data from several federal agencies and investigated budget expenditures, leading to massive 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 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, salaries, etc., 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.

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 pushes forward with the plan, "it could 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 related blockchain and virtual assets are expected to benefit greatly," but added, "However, the actual possibility of introduction may be low, and there is a higher likelihood of a consortium blockchain being applied rather than a public blockchain."