DOGE drops after Musk distances federal department from memecoin
Elon Musk has once again stirred the Dogecoin waters, but this time to quash growing speculation. Speaking during a town hall hosted by the America PAC—a political action committee Musk launched last year—the billionaire clarified that the U.S. government has no intention to adopt or use Dogecoin in any official capacity.
"There are no plans for the government to use Dogecoin or anything as far as I know," Musk said. He attributed the confusion to the naming of a federal initiative, originally titled the Government Efficiency Commission, which was later rebranded as DOGE—an acronym for the Department of Government Efficiency. Musk admitted the name change came from internet suggestions and acknowledged that the similarity to the memecoin's name sparked unnecessary speculation.
Despite Musk’s denial, Dogecoin had surged earlier this year when the department’s acronym was revealed—especially after its logo briefly appeared on a government website following President Trump's inauguration. Many believed this was a sign of official endorsement, especially given Musk’s well-documented support of the cryptocurrency.
DOGE price reacts to clarification
Following Musk’s remarks, Dogecoin dropped 3.2% in the last 24 hours to $0.16, according to The Block’s price data. The correction highlights just how sensitive DOGE's price can be to Musk’s commentary—even when his intention is to dispel rumors rather than stoke them.
The Department of Government Efficiency has played a prominent role in President Trump’s cost-cutting initiatives, reportedly saving $130 billion to date. It has already triggered layoffs across more than a dozen federal agencies, including the IRS and USAID. However, the program has also faced mounting legal challenges, with multiple lawsuits filed over procedural errors during the layoffs.
While Musk's clarification put an end to any immediate DOGE-fueled optimism, the incident reflects Dogecoin’s unique status in the crypto landscape—an asset whose value can still hinge on memes, sentiment, and the statements of a few powerful individuals.
