Donald Trump officially unveiled the new Department of Government Efficiency (DOGE) at his inauguration ceremony. This statement, Dogecoin $0.343254 (DOGE) and the parody caused mixed movements in DOGE tokens. While historically, tokens have been observed to gain value following such announcements, this time movements were seen along with the overall market decline.
Establishment of the Department
In his speech after the inauguration, Trump announced that he would establish a new department to reestablish the competence and effectiveness of the federal government. Subsequently, the executive order regarding the establishment of the department was returned.
DOGE lost 5% in the last 24 hours, but the losses later reversed. The broad-based CoinDesk 20 index fell nearly 5%, while Bitcoin (BTC) 
$102,590.7 It decreased by 3%.
Role of Elon Musk
The head of the department is technocrat Elon Musk. The department’s website began displaying the Dogecoin token logo on Tuesday, although it has no direct affiliation with the world’s largest memecoin. In October, Musk first floated the idea that DOGE could be used as a civilian agency to make government spending more efficient.
National Security Counselors claimed the committee violated the Federal Advisory Committee Act of 1972.
DOGE is not appreciated in government circles and faces several lawsuits. The legal advocacy group National Security Counselors argues that the department’s legal structure is unclear and violates requirements of the Federal Advisory Committee Act. Public Citizen is demanding more details about how the group will operate.
The department does not have the authority to implement its recommendations, which limits the group’s effectiveness. It is unclear for now what kind of support Trump will give regarding implementation.
The announcement of Donald Trump’s new Department of Government Efficiency did not have the expected positive impact on Dogecoin markets. While markets were generally declining, parody DOGE tokens attracted attention. Future steps of the department led by Elon Musk may play an important role in shaping DOGE’s market performance.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
