Dogecoin (DOGE) Jumps 7% as Musk Touts D.O.G.E at Trump's Pennsylvania Campaign

The proposed department, abbreviated as D.O.G.E, will seek to make government spending of taxpayer money more efficient while streamlining departments that handle spending.

Dogecoin (DOGE) price rose sharply on Thursday evening after Elon Musk further unveiled plans for his proposed “Department of Government Efficiency” at a Pennsylvania town hall.

The event was held to encourage early voting in the crucial state, where Republicans and Democrats are in a close race.

DOGE price surged 7% to over 13 cents for the first time since late July, outperforming the broader market and bitcoin’s 1% rise in the past 24 hours. It extended one-week gains to over 22%, the highest among all major tokens.

DOGE-denoted open interest - or the number of unsettled futures bets - spiked to over 5 billion tokens in a sign of forthcoming volatility. Higher open interest alongside higher prices suggests that the market trend is strong.

Musk has thrown his weight behind Republican Donald Trump’s presidential campaign in recent months. He has donated over $75 million to the American PAC since July and is set to make multiple campaign appearances in Pennsylvania this month.

The proposed department, abbreviated as D.O.G.E, will aim to make government spending of taxpayer money more efficient by streamlining the different departments that handle the state’s spending.

Speaking at the Thursday town hall, Musk said that the proposed department could be run like a corporate company, with incentives for those who perform well and penalties for those who fail to deliver results.

The expectation among crypto traders is that a Trump victory could lead to more chatter of “DOGE,” and if D.O.G.E does become a part of the government, it will continue to bring retail attention and interest to dogecoin in the future.

“Elon Musk is simply going to meme the 'Department of Government Efficiency' into existence - with validation from Trump!,” influential X trader @theunipcs said in a Wednesday post, earlier reported. “And you can expect him to continue to aggressively bullpost the concept until it gets created.”

@theunipcs later added in a Friday post that DOGE’s popularity could also help propel a rise in floki (FLOKI), a meme ecosystem project that was initially inspired by the name of Musk’s pet dog.

Musk is a well-known dogecoin supporter and DOGE tends to surge on any Musk-related developments pertaining to payments at his companies, like X or Tesla.

BlockFi, a major crypto lending platform, has filed for Chapter 11 bankruptcy protection in the wake of the FTX collapse and the Genesis liquidity crisis.

The crypto exchange, founded in 2017, had earlier paused withdrawals in mid-November after Genesis halted withdrawals due to the FTX-induced market contagion. Genesis, a counterparty to BlockFi’s lending activities, had earlier reduced its total active loan portfolio from $2.8 billion to $1.2 billion in Q3.

BlockFi had applied for a BlockFi credit card with Visa in March, and the card was launched in August. The crypto exchange had also earlier announced plans to go public via a merger with a special purpose acquisition company (SPAC) in a deal valued at about $2.4 billion. However, the merger was later called off.

According to the Chapter 11 filing, BlockFi has over 100,000 creditors, with liabilities ranging from $1 billion to $10 billion, while its assets are valued between $256.9 million to $514.5 million. The filing also includes eight BlockFi subsidiaries, notably BlockFi Lending.

The filing further states that BlockFi will continue to operate normally during the bankruptcy proceedings and that customer funds will be unaffected. The crypto exchange will also continue to honor customer rewards programs, and employees will be paid in full.

BlockFi had earlier paused customer withdrawals on Nov. 14 after Genesis halted withdrawals due to the FTX-induced market contagion. The Genesis liquidity crisis had also impacted other crypto exchanges, notably Coinbase, which later announced plans to reduce its workforce by 20%.

Genesis, a counterparty to BlockFi’s lending activities, had earlier reduced its total active loan portfolio from $2.8 billion to $1.2 billion in Q3. The Genesis loan book had earlier seen a peak of $5.4 billion in Q4 of 2021.

Genesis had also earlier closed down its Genesis Spot Markets business, which was later acquired by crypto exchange Binance. The Genesis markets business had a total trading volume of about $24 billion in October.

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