Dogecoin (DOGE) and parody tokens DOGE showed mixed moves alongside a broader market decline, even as Donald Trump officially unveiled a Department of Government Efficiency during his inauguration on Monday – going to the against a historical trend of tokens increasing on such mentions.
“To restore the competence and effectiveness of our federal government, my administration will create the all-new Department of Government Efficiency,” Trump said during his speech after the swearing-in.
A decree creating the department was published shortly afterwards.
The department holds no formal authority to enforce its recommendations and is led by technocrat Elon Musk. The website began displaying a dogecoin token logo on Tuesday, although it has no direct connection to the world’s largest memecoin.
DOGE fell as much as 5% in the past 24 hours, before reversing its losses, tracking a nearly 5% drop in the broad-based CoinDesk 20 (CD20) and a 3% drop in Bitcoin (BTC) . A parody token, meanwhile, is up 6%, with the bulk of the gains coming during the European morning.
Musk first raised the idea of DOGE in October as a non-governmental agency tasked with making government spending more efficient. This has since fueled the expectation among traders that there may be more discussions about “DOGE” in mainstream media and retail trading circles, fueling attention and interest in dogecoin, as l ‘ noted a CoinDesk analysis in mid-October.
DOGE is not popular in government circles and is subject to lawsuits. The National Security Advisors, a legal advocacy group, says the committee violates the Federal Advisory Committee Act of 1972, which requires advisory groups to operate transparently.
He says the ministry has an unclear legal structure. Public Citizen, another watchdog, is demanding more details about how the group operates.
