While the president Donald TrumpThe inauguration Monday introduced a new Ministry of Government Effectivenessthe expected increase in Dogecoin DOGE/USD and the associated parody tokens have not fully materialized.
This unexpected reaction suggests the complex relationship between meme coins and real-world political events, suggesting that the market is not always predictable even when there are seemingly direct connections.
What happened: Trump’s speech, which detailed the need for a “brand-new Department of Government Efficiency,” led to the passage of a formal executive order creating it, led by Elon Musk.
The move was intended to express a commitment to streamlining federal operations.
What is curious, however, is that the ministry website displayed a Dogecoin logo on Tuesday, although it has no clear connection to the real coin, which is a very confusing move for some observers.
This announcement did not trigger the expected rise in the value of Dogecoin.
Traditionally, any mention of “DOGE” in this kind of context has often caused the coin to rise.
However, Dogecoin saw an initial decline of up to 5% before recovering, accompanying a broader market downturn that also saw Bitcoin fall 3%.
This reaction suggests that the market is not a simple reflection of current events.
Investors seem less influenced by the indirect links between the meme coin and the Trump administration, at least on this occasion.
Conversely, a parody token Dogecoin saw a 6% increase, mainly during the European morning trading session, showing the complexity and erratic movements that characterize this type of market.
Read also: Crypto Market Crashes After Trump’s Inaugural Address Fails To Mention Digital Assets
Why it’s important: This divergence in performance highlights the speculative nature of the meme coin space.
It also raises questions about why the market did not see an increase over the original, but chose to reward one of the knockoffs.
It could be that investors, rather than buying the original, saw an opportunity in one of the counterfeit meme tokens, in order to protect themselves against losses, or are simply more attracted to what they see as a more volatile alternative.
Elon Musk’s previous suggestion to use Dogecoin for government efficiency, initially launched in October, had raised expectations within the crypto community.
The idea was that the news would lead to an increase in discussions about DOGE, thereby boosting the coin’s profile. Instead, we observe mixed market performance, indicating the limits of this type of indirect association.
It is also clear that the creation of this department is not without controversy, which further adds nuance to the situation.
National security advisers say department violates Federal Advisory Committee law due to lack of transparency.
This raises questions about the legality and structure of the newly formed department and, by extension, raises questions about any association with the coin community.
Public Citizen also demanded more details, further questioning its transparency and operation.
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