Trump appointed Musk to lead the 'DOGE' department, and Dogecoin soared 400% overnight! Who would have thought that DOGE was a joke?
On November 13, 2024, the newly elected US President Trump appointed Elon Musk to lead a newly established government department, the Department of Government Efficiency (DOGE for short). The main goals of this department are:
1. Streamline the cumbersome procedures of government agencies
2. Reduce excessive regulation
3. Cut unnecessary expenses
4. Reorganize federal agencies
Interestingly, netizens jokingly call this new department the US version of the "National Development and Reform Commission".
Musk will be one of the two main leaders in this "National Development and Reform Commission". In fact, Musk originally proposed the establishment of this Department of Government Efficiency (DOGE) as a joke. He also humorously stated that the mascot of Dogecoin (DOGE), Shiba Inu, may become the logo of the department.
To further joke, Musk even used artificial intelligence to create a photo of him as the head of the department and posted it online, which attracted widespread attention.
Since the new division shares the same name as Dogecoin (DOGE), the price of Dogecoin has risen by more than 100% in recent days, and more than 400% in the past month.
If you invested in Dogecoin early, you might have sold it when it rose 5 or 10 times. Moreover, everyone can feel the pain of the ups and downs along the way, and few people can really bear it.
The market of Dogecoin in 2021 is indeed talked about, and it also exposes some "truths" of the financial market.
A major principle of investment is to find assets that have real value and can generate cash flow.
However, the craze of Dogecoin has completely overturned this traditional concept.
Many people find this situation "absurd" because according to traditional investment logic, the value of an asset should be based on its profitability and intrinsic value, rather than relying solely on market sentiment.
But market reactions always reveal a certain reality.
"The market is always right."
When we cannot understand market fluctuations, it is often because we lack sufficient understanding of the rules, sentiments and trends of the market.
The surge in Dogecoin is not accidental, it is the result of the combined effect of multiple factors.
