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.
The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results.
Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.