Dodging the Doge

[Updated]: SoFi offers Dogecoin as of June 2021. Read why here.

Like you, we’ve been watching incredulously over the last couple of weeks as the cryptocurrency Dogecoin has soared past its previous all-time highs, powered initially by Reddit . Then Elon Musk threw gas on the fire with a veritable storm of Doge pumps . We’ve gotten a lot of inquiries on whether we offer trading in Dogecoin (no) and if we are planning on offering it anytime soon (probably not). So, we’d like to share a little bit about why we don’t offer Dogecoin, and the process we use to make those decisions.

For those new to the meme of Doge, Dogecoin began as a Twitter joke way back in 2013, poking fun at cryptocurrency and the explosion of Bitcoin spinoffs. Its creators, Jackson Palmer and Billy Markus, launched the “currency” after a three-hour find-and-replace job using Bitcoin’s original source code, not expecting anything to come of it. “I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over 2 years has a $1B+ market cap,” Palmer would later say .

With that said, we take a more systematic and measured approach to breaking into the world of cryptocurrencies. We generally evaluate cryptocurrencies on a number of key factors before we decide they should be made available to trade on the SoFi Invest platform:

Feasibility: We can establish a custody and trading solution with a trusted partner (e.g., Coinbase, which does not trade Dogecoin).
Asset Values: The asset aligns with SoFi’s values, such as promoting financial inclusion and economic freedom.
Legal and Compliance: We can legally offer the asset, per SoFi Crypto’s current licensing.
Market Supply: Meets liquidity standards, including market capitalization and distribution of volume.
Market Demand: Demand internally from both SoFi members and externally from developers, the community, and external stakeholders.
Technology: The code is open-source with a demonstrated track record of governance, scalability, security, and backed by a strong engineering team and growing community of contributors.

We typically source this information from validated and verified crypto research sites, data sources like
Coinmetrics , asset ratings from the Crypto Rating Council , and custody and trading partners, like Coinbase . While we are agnostic with regard to specific blockchain protocols, we focus our efforts on protocols and technologies that have proven security and are less susceptible to attacks .

As a result of this process, we offer trading in Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and Ethereum Cash. We are always evaluating the possibility of adding additional cryptocurrencies, but when it comes to Dogecoin, well…don’t hold your breath.