Cannabis organizations seek to enhance communities with crypto expansions
The cannabis industry is booming, with new corporations and cryptocurrencies aimed at facilitating cannabis trade seemingly cropping up every day. Among these, there are a few that focus on providing social impact through their services, benefiting the community by providing social benefits as well as top tier products.
One example is PotNetwork Holdings, Inc. (OTCMKTS:POTN), a premier presence in the CBD industry due to its increasingly well-known brand of CBD products. By expanding into the cryptocurrency scene with the formation of subsidiary Blockchain Crypto Technology Corporation, they will provide a much more convenient and safer method of payment processing via their CBD coin which is under development.
Its crypto expansion can help POTN in its efforts doing social good through its subsidiary Diamond CBD, Inc. which embarked on a 10-day charity drive to provide materials to organizations in the Kenya region. They participated in a tree planting exercise as a part of reforestation initiatives aimed at restoring the beauty of Ngong Hills, and have also conducted charity drives in Vietnam and the Philippines as part of their dedication to promoting social impact as part of their objectives.
Enter crypto-cannabis Cannabium
Labeled the world’s first cannabis commodity backed token, Cannabium utilizes blockchain technology to provide users access to fully legal cannabis products grown in Columbia. Cannabium can be bought, traded, and exchanged for 99+% pure and certified CBD. Users can also reap the benefits of profit sharing for up to 20% of One Columbia’s profits over the span of 5 years.
Nachshol Cohen was a young boy when his father was diagnosed with Stage 4 multiple myeloma cancer, an incurable disease. As he was subjected to excruciatingly painful treatment and opiates proved to be ineffective, medicinal cannabis became the sole provider of pain relief. Cohen’s father was the first patient in Israel to receive a license to cultivate and use medicinal cannabis, with Nachshol and his family eventually taking over his ailing father’s responsibilities.
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This launched his career as an expert in cannabis cultivation in Colombia and planted the seeds in the 10+ year veteran’s mind for a way to utilize cannabis not just as a mere commodity, but as a way to improve the lives of the farmers who toiled day and night to produce it.
Cannabium was established through the efforts of Colombia based and licensed CBD producer ONE Colombia, South American cannabis product brand Innova Biopharmaceuticals, and Canadian fintech company Tokenopoly.
“I don’t know of another cryptocurrency that took 1,000 people out of poverty in such a direct way,” Chief Executive Nachshol Cohen says. Cohen affirmed his commitment to providing social benefits, stating that he decided on private and public token sales to raise funds as opposed to relying on angels or venture capitals, which would vastly limit the benefits he felt he could provide to society.
The private pre-sale for the token is currently running up until May 21, 2018 for authorized investors, with the public token sale being launched on April 20, 2018. 90% of tokens will be available to all purchasers, with just 10% being reserved for founders and key individuals. Tokens will range in cost from $0.05 to $0.08. Cannabium has set a goal of raising $3 million through token sales, and refunds will be processed if this amount isn’t met.
With an average wholesale price of $15,000/ kilogram for 99+% CBD, one Cannabium token represents 10mg, or $0.15. Exact numbers haven’t been specified, but Cannabium guarantees a minimum of at least 25,000,000 coins every month.
Cannabium users can redeem their tokens starting at the end of the first quarter in 2019. A minimum of 100 tokens must be redeemed, as this is the equivalent amount to 1 gram of CBD. As Cannabium operates on the principle of a product-backed coin, all redeemed tokens will be taken out of the system accordingly.
Providing for the underappreciated farming community
The token system is crucial to providing funds for the development of the infrastructure, led by ONE Colombia, which includes state of the art purification facilities as well as nurseries capable of growing millions of cannabis plants. They will be responsible for establishing an annual capacity of about 50 tons of CBD. These plants would be produced on farms and serve as a crucial source of employment for 200 families.
Also provide funds and volunteer work conducive to health care and education for the farming community by committing to building schools and hospitals in the areas of Corinto, Colombia, where cultivation will be maintained. ONE Colombia will also build an extraction facility in Cauca Valley, Columbia for the manufacturing of CBD products.
When a Cannabium token is purchased, it triggers the production of CBD associated with that token. The purchaser will receive CHIT tokens equivalent to the current offering price as well as the Ethereum to USD exchange rate as Cannabium utilizes the Ethereum platform of cryptocurrency. The CHIT token will then be redeemed for the proper amount of Cannabium tokens and will be sent to the purchaser’s wallet.
In order to sell the token, the CBD associated with it is sold on the market, typically near double the original purchase price, and customers are rewarded with the cash. Cohen believed that the ultimate success of the currency lies in providing a completely legal and sustainable working economy for many of the local farmers.
Ethereum, the perfect partner
Cannabium’s innovative system would represent a revolutionary way for the world to get a market price for CBD, says CTO Ezra Epstein. He stated that each Cannabium token is backed by more than twice the amount that could be purchased at wholesale value.
Blockchain technology will serve as a marketplace for buyers and sellers, as this will allow for pricing structure of a product that doesn’t have a universal price. Commodity pricing will be established once the marketplace is open, as the blockchain will provide transparency and an ability to determine and verify an appropriate price.
Epstein states that Ethereum’s wide use and ease of application were some of the keys to deciding which platform to utilize. This would help Cannabium transform the cannabis commodity trade while influence investments and supply chain to improve the lives of as many people as possible by increasing profits and values of the ERC 20 standard coin.
With token sales currently running and having heavily invested in future projects and development, it will be interesting to see how Cannabium performs after it becomes available for redemption in towards the end of the first quarter next year. Until then, all we can do is wait or participate in the token sale.
A high quality backed token that also provides jobs for hundreds of farmers in Colombia: that’s what Cannabium embodies and it’s an impressive initial offering.
