Meme coins inspired by the concept of “government efficiency” saw a significant decline in value following Elon Musk’s recent comments on cost-cutting targets for a new government agency.
The coins, launched as satirical tokens linked to the Department of Government Efficiency, a proposed agency aimed at reducing bureaucratic waste under the Trump administration, plummeted in value on Sunday. One version, a DOGE-themed token, dropped by 18% in the past 24 hours, while another, featuring a dog wearing a MAGA-style hat, fell by 20%.
The Department of Government Efficiency, which Musk co-leads alongside billionaire Vivek Ramaswamy, had originally promised to cut up to $2 trillion from the federal budget. However, Musk recently revised the projection, calling $1 trillion in cuts an “epic outcome.” In a statement on X (formerly Twitter), Musk noted, “If we try for $2 trillion, we’ve got a good shot at getting one. That would free up the economy, reduce inflation, and be, well, epic.”
Musk’s revision caused a sharp decline in the meme coins that were launched in response to the agency’s mission. The tokens, which play on the agency’s acronym—DOGE, the trading symbol for Dogecoin—saw their values drop as Musk’s comments raised questions about the feasibility of such cuts.
“It’s very, very hard for people to care about spending someone else’s money,” Musk remarked, suggesting that federal regulations often hinder large projects and render them prohibitively expensive.
While the DOGE agency isn’t an official governmental body and lacks direct authority to enforce policies or cut spending, it has been positioned to advise the White House on potential budgetary reductions.
Tech journalist Kara Swisher, who has interviewed Musk before, expressed little surprise at his retreat from the $2 trillion target, calling it “typical Musk.” She noted that Musk has a history of over-promising and under-delivering, citing past ventures such as the Hyperloop, robotaxis, and autonomous vehicles.
“The weird part is he is fully capable of delivering good stuff when he just shuts up,” Swisher added.
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