The S&P recently released a list of the 243 that are in its crypto index, and Dogecoin is not one of them. The index that contained the top coins on the crypto market conveniently omitted Dogecoin. A coin that currently ranks 8th on the list of top cryptocurrencies by market capitalization.
The crypto index was one of five indices published by S&P Indices. Known as the S&P Cryptocurrency Broad Digital Market (BDM) Index, the index included both well-known and lesser-known protocols.
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Dogecoin exclusion comes as a surprise given the name it has made for itself. But it appears that the meme project does not meet the criteria used by S&P to compile the index.
Other notable coins and projects like Monero also failed. Ripple (XRP) and BSV were also excluded from the index.
S&P Inclusion Guidelines
The reason for leaving out Dogecoin isn’t anything scary or malicious. The S&P indices have an oversight committee to ensure that a coin meets governance requirements before it is accepted. This committee can take a coin out of the index if it doesn’t correlate with these governance metrics.
The S & P’s governance documents reveal reasons a coin may not be included in the index. Things like a coin that is an “unregistered security” is one reason a coin might have been omitted. Others include coins with “privacy features” or coins that have a “potential market disruption”.
Dogecoin continues to fight | Source: DOGEUSD on TradingView.com
According to these governance metrics, coins like Dogecoin and Monero would be cut out. Given the former is a meme coin that was created as a hoax. And the latter, Monero, is a privacy coin. Which clearly violated the governance metrics by which these coins are selected.
A source familiar with S & P’s selection process told CoinDesk that it’s because the project doesn’t have a whitepaper.
The creators of Dogecoin admitted that the project was actually created as a joke. The coin, which was an offshoot of Litecoin, was supposed to be a fun and light-hearted project. In contrast to the core Bitcoin project and the community.
Dogecoin should never be more than a tipping system to reward creativity on Reddit and Twitter. But celebrities like Elon Musk, who took part in the project, made the coin price soar over the past year.
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The comment from the CoinDesk source seems to relate to this. Because the current “whitepaper” from Dogecoin is more just an extension of the comedic character of the project itself than an actual whitepaper.
Dogecoin is currently trading at $ 0.185, with a market cap of $ 24 billion.
Featured image from Analytics Insight, chart from TradingView.com