Musk Rejects Dogecoin Ties to D.O.G.E. Agency, DOGE Price Sinks

Musk’s D.O.G.E. Sparks Turmoil Despite Denial of Crypto Tie

Elon Musk’s latest clarification at a town hall in Green Bay, Wisconsin, has done little to contain the fallout from the federal D.O.G.E. initiative, which has triggered confusion and heavy losses among Dogecoin holders. Speaking on March 30 at an event hosted by his America PAC, Musk firmly stated there were no plans for the U.S. government to adopt Dogecoin, distancing the token from the Department of Government Efficiency—D.O.G.E.—despite the acronym and an earlier appearance of the Dogecoin Shiba Inu mascot on the agency’s website. 

“There are no plans for the government to use Dogecoin or anything as far as I know,” Musk told the audience. “They happen to be similar names, but really, we’re literally just trying to make the government 15% more efficient.” He explained the agency’s name emerged from public feedback, noting he initially proposed “Government Efficiency Commission” but pivoted after internet users suggested the more meme-friendly version.

Despite Musk’s statements, the crypto market reacted sharply to D.O.G.E.’s rollout, especially after the Shiba Inu logo briefly featured on the agency’s official page in February 2025. That moment alone triggered a 14% spike in Dogecoin’s market cap, lifting it to $58 billion, only to see sentiment sour once Musk downplayed any direct connection. As of March 30, Dogecoin was trading at $0.1654, down 3.3% over 24 hours and nearly 50% off its recent highs. 

The slump accelerated after the launch of the D.O.G.E. agency and Trump’s re-inauguration, both seen as significant catalysts behind the token’s rapid decline. Dogecoin millionaire addresses have plunged 41.37% since January 21, shedding 964 wallets in just over two months. That includes a 40.21% drop in addresses holding $1M–$9.99M, falling from 1,930 to 1,154, and a 47% collapse in the $10M+ bracket, which sank from 400 to 212.

Losses hit hardest in the $100K–$999K range, where addresses dropped by 49.5%—a net loss of 7,564 wallets. Yet the biggest numerical decline came from the $100–$199.99 cohort, which lost 290,630 addresses, a 21.08% drop. Even among smaller holders, damage was visible: wallets with $1–$99 shrank by 6.78%, or 238,719 addresses. 

These figures illustrate the broad erosion of retail and institutional confidence as sentiment buckled under both market pressure and political ambiguity. Analysts have pointed to the mixed messaging and visual overlaps between the federal D.O.G.E. department and the memecoin as key factors fueling confusion, despite Musk’s insistence on the lack of any formal connection.

The D.O.G.E. initiative, first teased in August 2024 and unveiled after Trump’s return to office, aims to cut government spending by 15%, eliminate overlapping regulations, and downsize major federal agencies. Its implementation has already brought sweeping changes—triggering mass layoffs and budget cuts across climate research, scientific studies, and diversity programs. Agencies like USAID, the Consumer Financial Protection Bureau, and the Social Security Administration have all seen significant restructuring. These rapid changes have sparked legal challenges questioning the department’s authority and process.

Musk’s role within D.O.G.E. remains opaque. The White House identifies him as a senior advisor without policymaking power, while Trump frequently refers to Musk as the head of the agency. Musk has stated he is not being paid for the role, a detail that only deepens the ambiguity surrounding his influence. 

While broader macroeconomic factors—such as crypto market volatility and Federal Reserve recession warnings—have contributed to Dogecoin’s collapse, Musk’s involvement has undoubtedly exacerbated uncertainty. Researchers observed that if the economic backdrop is the primary driver, then Musk’s connection alone won’t revive Dogecoin’s fortunes. Still, his symbolic entanglement has generated enough turbulence to make the damage irreversible for many holders, especially those who mistook the D.O.G.E. initiative as a bullish signal.

This article has been refined and enhanced by ChatGPT.