In recent weeks, Tesla CEO Elon Musk has shifted from providing economic support for former President Donald Trump to taking a more prominent role, joining the candidate on stage during his campaign rallies.
The most recent rally was held this weekend in Folsom, Pennsylvania, where Musk managed to send the price of Dogecoin—one of his favorite cryptocurrencies—soaring just by saying the word “DOGE” during his speech. The curious part is that he wasn’t actually referring to cryptocurrency.
The confusion: DOGE. After speaking at Trump’s rally, Musk took questions from some attendees. According to the BBC, one person asked about Trump’s proposal to place Musk at the helm of a new “Department of Government Efficiency,” which would be tasked with conducting a full audit of the federal government and recommending reforms.
Faced with the question, Musk gave a terse response, in the style of his messages on the social media platform X: “Yes, DOGE.” The audience applauded, and almost immediately, the cryptocurrency began to rise, according to analysts.
DOGE isn’t Dogecoin. Musk’s answer to the question about optimizing the government structure wasn’t about applying a memecoin. The Tesla CEO referred to DOGE as an acronym for “Department of Government Efficiency,” the name of the department he would supposedly lead if Trump reaches the White House.
The price skyrockets. The mere mention of the cryptocurrency’s name by an influential figure like Musk was enough to spur investors to buy it, causing a 15% price increase in just 24 hours. The price had already risen by 22.09%, according to TradingView.
With this increase, Dogecoin rose from 11 cents to 14 cents, consolidating its position as the eighth-largest cryptocurrency in the world. After Musk mentioned it, its market capitalization increased to $20 billion.
This isn’t the first time this has happened. The relationship between Musk and Dogecoin isn’t new. In 2021, the billionaire posted on his X profile (then Twitter) that he was working with Dogecoin developers to improve transaction efficiency. The response was immediate, and just like this past weekend, its price soared.
In 2022, investors sued Musk and his companies, accusing them of manipulating a Dogecoin Ponzi scheme for their own benefit through his Twitter posts. The plaintiffs sought $258 billion. The court dismissed the case in August 2024.
Musk’s favorite cryptocurrency. Despite accusations of price manipulation, Musk’s involvement with Dogecoin extends to various areas.
In 2023, he changed the X icon to the Shiba Inu image that represents Dogecoin as a nod to the community. Additionally, SpaceX launched DOGE-1 to the moon, a satellite funded by Dogecoin, with the launch paid for in the cryptocurrency.
Image | Rūdolfs Klintsons
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