Dogecoin (DOGE) - Crypto Asset Statement
PLEASE READ THIS CAREFUL. BY PROCEEDING TO TRANSACT DOGE, YOU ACKNOWLEDGE AND ACCEPT THE STATEMENTS SET OUT BELOW.
About this summary
Ndax Canada Inc. (“Ndax”, “we” and “our”) believes that our users should understand the crypto assets that they are able to trade and stake using our crypto trading platform (the “Platform”). One of the crypto assets we offer on the Platform is DOGE. We created this summary to help you understand the basics of DOGE as well as some of the risks involved in trading in DOGE. While we tried to describe the key features of DOGE, this summary isn’t meant to tell you everything you’d want to know before investing in DOGE. You should also do your own research on DOGE to make sure you are comfortable investing in it.
Description of DOGE
History of DOGE
In 2013, an Australian marketer and software developer, Jackson Palmer, had the funny idea of combining two tabs open side-by-side on his computer screen. One was CoinMarketCap, a crypto stats website, and the other was an article on a popular meme about the Japanese Shiba Inu dog. He put together both the elements and sent out a tweet about a new cryptocurrency called Dogecoin.
Shortly afterward, an IBM developer, Billy Markus, approached Jackson on Twitter, asking if he would like to create an actual cryptocurrency named Dogecoin. Palmer agreed, and Dogecoin was officially launched on 6th December 2013. Later, both the founders stepped away from Dogecoin, leaving it entirely in community members’ hands.
What is DOGE used for
On its website, Dogecoin (DOGE) is described as ‘the internet currency’ that enables you to send money online. In the real-world, the coin is majorly used for tipping and donation. Occasionally, DOGE has been used by its community to raise funds. Some notable events are:
- Raising $50,000 to fund the Jamaican Bobsled Team journey to Winter Olympics in 2014.
- Raising $30,000 in 2014 to build wells of clean water in Kenya.
- Raising $55,000 to sponsor Josh Wise, a NASCAR driver.
Additionally, DOGE has a floating exchange rate with other cryptocurrencies and can be traded and bought for fiat currencies.
How DOGE works
Dogecoin uses a proof-of-work consensus mechanism to append blocks and approve transactions. While Bitcoin uses the SHA-256 hash function for mining, Dogecoin relies on Litecoin’s Scrypt, an ASIC-resistant algorithm.
DOGE is a fork of LuckyCoin, which itself was a fork of Litecoin. However, Dogecoin developers switched to a merged mining model to avoid risk and competition from the Litecoin community. This meant Litecoin miners could also mine Dogecoin without any additional efforts.
Unlike Litecoin, Dogecoin does not have a limited supply of DOGE tokens. The inflation-based approach was designed to ensure miners would always be rewarded with new Dogecoin.
Initially, the total supply of DOGE was capped at 100 billion coins, with an additional 5.256 billion coins to be released every year after that. Dogecoin mining targets a one-minute block time, and 10,000 coins are rewarded per block.
Risks
Before entering into an agreement (a “Crypto Contract”) with Ndax to buy or sell any crypto assets through the Platform, it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.
Like other crypto assets, there are some general risks associated with investing in DOGE. We describe many of these general risks in the risk statement we publish on our website that you have already acknowledged, including risks relating to: (i) short history; (ii) volatility in the price of crypto assets and loss of liquidity; (iii) potential decrease in global demand for crypto assets; (iv) The blockchains on which crypto assets operate may temporarily or permanently fork or halt; airdrops; (v) issues with the cryptography underlying the Crypto networks; (vi) custodial wallet systems; (vii) uncertainty in regulation and future financial institution support; (viii) currency risks; (ix) concentration risks; (x) electronic trading and dependence on the internet; (xi) cyber security risks; (xii) inadequate due diligence; (xiii) Ndax’s reliance on vendors and third-party service providers; (xiv) liquidity constraints; (xv) no voting rights; (xvi) lack of investor protection insurance; (xvii) commissions and other charges for trading; (xviii) no advise; (xix) transfers; (xx) beta features; (xxi) unforeseeable risks; and (xxii) conflicts of interest. We also point out a risk that is specific to DOGE below. While we tried to describe the key risks associated with DOGE here and in our risk statement, these aren’t all of the risks associated with trading in DOGE. You should also do your own research on DOGE to make sure you are comfortable investing in it.
Concentration of DOGE Holdings
The largest DOGE addresses hold a very large portion of the DOGE currently outstanding. Market volatility may result when large holders of DOGE decide to sell significant amounts of their DOGE positions.
Relative Lack of Synced Nodes
When compared to the Bitcoin network, the Dogecoin Network has significantly fewer nodes (i.e., computers) synced within five blocks of the chain’s tip. Less nodes being synced to the blockchain’s tip makes it in more difficult for new nodes to connect to the network, which results in less decentralization and has the potential to undermine the permissionless nature of the Dogecoin Network.
Volatility Based on Public Sentiment
DOGE has seen extreme fluctuations in value related to public statements from celebrities and other public individuals. Most notably, statements from Tesla founder Elon Musk have caused the price of DOGE to rise and fall in a manner largely unrelated to its functionality. DOGE is likely at a greater risk of volatility than other crypto assets due to this history.
Conflict of Interest Disclosure
Ndax has assessed potential conflicts of interest associated with the offering, and ongoing availability of DOGE through the Platform. As of the date of this statement, Ndax has not identified any actual, material, or reasonably foreseeable conflict of interest that would be expected to impair our ability to act in the best interests of clients or to make fair, objective, and independent decisions regarding DOGE. Ndax maintains policies and procedures designed to identify, manage, and address conflicts of interest on an ongoing basis and will update our disclosures if any material conflict is identified in the future. For additional information about the material conflicts of interest identified by us, please refer to our Conflicts of Interest Statement, the latest version of which can be found on our Website.
Regulatory Information
Ndax is a registered investment dealer under securities legislation in all provinces and territories of Canada, and is a member of the Canadian Investment Regulatory Organization (CIRO) and of the Canadian Investor Protection Fund (CIPF). Ndax is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re NDAX Canada Inc. dated December 19, 2024 (found {here}) and under the terms and conditions imposed by CIRO on Ndax’s membership with CIRO (found {here}). Any fiat currency held in users’ accounts is protected by CIPF’s Investment Dealer Fund in accordance with its Coverage Policy. However, CIPF coverage does not extend to any virtual assets held in users accounts. These assets are not eligible for deposit insurance or any protection from the Canada Deposit Insurance Corporation (CDIC) or CIPF.
Please be aware that the statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada do not apply in respect of a misrepresentation in this Crypto Asset Statement.
Prior to offering a Crypto Contract on DOGE, Ndax assesses whether DOGE is a security and/or a derivative under the securities and derivatives laws of Canada. Ndax’s assessment includes a review of the history of DOGE (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding DOGE. Based on its assessment, Ndax concluded that DOGE is not a security or a derivative. However, there is a risk that this conclusion could change in the future. In that case, Ndax may be required to halt or withdraw DOGE from trading on the Platform and stop any future trading of Crypto Contracts based on DOGE, and users holding DOGE may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in DOGE will be notified via the Platform or other electronic means and advised of the options available to them and any applicable period to sell or withdraw their positions in DOGE.
No Canadian securities regulatory authority has expressed an opinion about DOGE, including an opinion that DOGE is not itself a security and/or derivative.
Last Updated: August 11, 2026