‘Government Efficiency’ meme coins lose value after Musk walks back cost-cutting plans
Tokens inspired by “efficiency” have become quite an expensive mess for investors.
Meme coins, named after the new Department of Government Effectiveness – a start-up agency devoted to cost-cutting measures under the new Trump administration – fell on Sunday.
A DOGE The token, which formed in 2024 as a satirical take on government spending and bureaucracy, saw a sharp 18% drop in value over the past 24 hours. See a trajectory below.
Another version of the coin, featuring a logo of a dog wearing a MAGA-like hat, also landed in the red at last check Sunday, down 20%.
The real DOGE – the veritable coterie of business leaders committed to eliminating bureaucratic waste – has been met with both intrigue and skepticism.
The agency, co-led by billionaires Elon Musk and Vivek Ramaswamy, initially boasted that it could cut $2 trillion from the federal budget. This week, however, Musk revised his estimate, describing $1 trillion in cuts as “an epic result.”
Speaking on X, which he owns, Musk explained his vision: “If we try to get $2 trillion, we have a good chance of getting one. It would free up the economy, reduce inflation and it would be epic.
Tokens inspired by the agency (whose name is an acronym for Dogecoin’s trading symbol) plummeted in value in the days following Musk’s comments.
“It’s very, very difficult for people to care about spending someone else’s money,” Musk said, adding that federal regulations often make large projects illegal — or at least costly prohibitive.
It turns out that DOGE is not technically part of the government and holds no real power to cut spending or enforce policies. He intends to advise the White House on what steps to take slash.
Tech journalist Kara Swisher, who has interviewed Musk in the past, was not surprised by the Tesla CEO’s sudden downplaying of what DOGE can accomplish.
“Typical Musk on more things than you think,” she says. said in a post on social media. “More bragging, then not enough results. »
Swisher cited other Musk-led initiatives (i.e. Hyperloop, robotaxis, autonomous vehicles) as examples.
“The strange thing is, he’s quite capable of delivering good things when he’s quiet,” she added.
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