The billionaire’s recent announcement Elon Musk taking the helm of a new government agency, the Department of Government Efficiency (DOGE), triggered a significant rise in the price of Dogecoin DOGE/USD.
What happened: Last week, president-elect Donald Trump revealed that Musk and the entrepreneur Vivek Ramaswamy would lead the new department, with a mission to reduce government spending and regulation. Following this revelation, Dogecoin price reached a yearly high of $0.39.
Coinbase CEO Brian Armstrong expressed support for the DOGE agency on Sunday, seeing it as an opportunity to strengthen economic freedom in the United States. He proposed constitutional amendments to cap public spending at 10% of GDP.
Armstrong further suggested the creation of a sovereign wealth fund, in which every American citizen would own a share and budget surpluses would return dividends to shareholders.
Read also: Dogecoin active users are on the rise, will this impact the price of DOGE?
Why it matters: Although it shares the same acronym, the government department DOGE is not associated with Dogecoin. Nonetheless, the announcement triggered a substantial rise in the price of the cryptocurrency.
Musk, who has faced allegations of manipulating the price of Dogecoin in the past, successfully defended himself in a 2022 lawsuit related to the case.
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Elon Musk cleared of Dogecoin market manipulation accusations
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