Dogecoin Rallies as Trump Launches Efficiency Initiative Dubbed DOGE!

NEW YORK (AP) — The cryptocurrency market is experiencing an impressive surge.

Dogecoin, the digital currency famously represented by an adorably quirky Shiba Inu dog, has seen its value soar since Donald Trump won the presidential election last week. The excitement increased further when Trump appointed Tesla CEO Elon Musk to head a newly announced initiative called the “Department of Government Efficiency,” which, interestingly, shares the acronym DOGE — the same as that of Dogecoin.

While this might sound amusing to those who are regularly engaged with online trends, here’s a more comprehensive explanation for those unfamiliar with the phenomenon:

What exactly is dogecoin?

Dogecoin is a cryptocurrency, meaning its value fluctuates against the U.S. dollar based on market demand. Initially perceived as a joke, it has gradually built a community of passionate supporters who have helped drive its price up at various moments. Advocates believe that it offers a decentralized method for online transactions, free from interference by central banks or governments.

How much has dogecoin increased in value?

Before Election Day, the value of one dogecoin — pronounced dohj-coin — was below 16 cents. As of Wednesday afternoon, its value has more than doubled, nearing 38 cents, and it briefly climbed above 43 cents earlier that day, according to CoinDesk.

What factors are contributing to this dramatic rise?

In the wake of Trump’s election, cryptocurrencies overall have been on an upward trajectory. Bitcoin, the most well-known cryptocurrency, has reached an unprecedented high of over $93,000, starting the year below $43,000. The market is buzzing with optimism as Trump has openly embraced cryptocurrencies, expressing his ambition for the U.S. to become the “crypto capital of the planet” and establish a bitcoin “strategic reserve.”

What role does Elon Musk play in this situation?

Musk is not only a close ally of Trump, but he’s also a vocal supporter of Dogecoin. His involvement became particularly notable in 2021 when he appeared on “Saturday Night Live” as the character known as the “Dogefather.” Moreover, in 2022, Musk made headlines again by suggesting that Twitter should consider accepting Dogecoin for subscription payments.

This has all come to a head with Trump’s announcement of the “Department of Government Efficiency,” designed to advise the White House on significant reforms and an innovative approach to governance. Musk is slated to lead this initiative alongside former GOP presidential candidate Vivek Ramaswamy. The department’s acronym, DOGE, aligns perfectly with the cryptocurrency’s ticker symbol.

Why does this all feel so peculiar?

The journey of Dogecoin is quite fascinating. In April 2021, Dogecoin enthusiasts aimed to push its price above $1 during an event dubbed “Doge Day.” This date coincides with the unofficial celebration of 420, recognized within cannabis culture, and Musk has made references to the number 420 in various contexts, including a now-famous tweet in 2018 regarding Tesla’s privatization.

What about the Shiba Inu featured in the meme? Is it receiving any special treatment because of this?

Unfortunately, that’s not the case. The canine whose image inspired the Dogecoin meme, known as Kabosu, passed away earlier this year at the age of 18. We wish her a peaceful rest.