‘Government Efficiency’ meme coins lose value after Musk walks back cost-cutting plans

“Efficiency” inspired tokens have become a very expensive mess for investors.

Meme coins named for the Department of Government Efficiency, an early-stage agency dedicated to cost-cutting measures under the newly formed Trump administration, dropped on Sunday.

One DOGE token, created in 2024 with a satirical take on government spending and bureaucracy, has seen a sharp 18% drop in value in the last 24 hours. See an orbit below.

Source: CoinGecko

Another version of the coin, bearing the logo of a dog wearing a MAGA-like hat, was also down 20% in the red at last check on Sunday.

Source: CoinGecko

The real DOGE (the real cabal of business leaders determined to eliminate bureaucratic waste) has fueled both intrigue and skepticism.

The agency, which will be jointly run by billionaires Elon Musk and Vivek Ramaswamy, initially boasted that it could cut $2 trillion from the federal budget. But this week Musk revised his forecast, describing the $1 trillion cut as an “epic outcome.”

Speaking about his X, Musk explained his vision as follows: “If we try for $2 trillion, we have a good chance of getting it. “This would free up the economy, reduce inflation, and be epic.”

Agency-inspired tokens (the name stands for Dogecoin’s trading symbol) plummeted in value in the days following Musk’s comments.

“It’s very, very difficult for people to care about spending someone else’s money,” Musk said, adding that federal regulations often make large projects illegal or at least prohibitively expensive.

It turns out that DOGE is not technically part of the government and does not have the authority to cut spending or implement policies. It aims to advise the White House on what to cut.

Technology journalist Kara Swisher, who has interviewed Musk in the past, wasn’t surprised by the Tesla CEO’s sudden underestimation of what DOGE could achieve.

“Typical Musk knows more about more than you think,” he said in a social media post. “Over-bragging and then under-delivering.”

Swisher cited other Musk-led initiatives (i.e. Hyperloop, robotaxi, autonomous vehicles) as examples.

“The funny thing is that he is completely capable of delivering good things when he shuts up,” he added.