Cannabis & Cryptocurrency: Cryptocurrencies Powering The Marijuana Industry
If we take a look into the modern world of finances, there are currently two growing markets so unconventional, that they weren’t even considered legal forms of business little over a decade ago: Cannabis and Cryptocurrencies.
Both sectors have solidly demonstrated to be more than profitable individually, each with an incredible potential to develop into what might be some of the very best fields to invest in times to come.
Human kind is constantly changing and evolving, so it should come as no surprise that products like medical/recreational cannabis or financial alternatives like cryptocurrencies, are well liked nowadays amongst modern societies, consumers and of course, investors.
Scientific research has certified medical cannabis as a real contender, when paired against multimillion pharmaceuticals who produce opioid-based drugs.
Add the ever growing market of legalised recreational cannabis into the mix, and the final product certainly becomes a force to be reckoned with when considering future investment possibilities.
Simultaneously, technological developments in the field of cryptocurrencies, such as complex computer programming and self-developing artificial intelligence, have allowed individuals to become part of an intricate virtual online network.
One where they can perform endless financial transactions between themselves, without the participation (nor fees) of third parties like banks or even regular, physical currency.
Said advancements in technology also make online finances quite safe due to constantly upgraded verification under untraceable processes of all cryptocurrency transactions. As a result, enthusiasts and investors worldwide are becoming more confident, making cryptocurrencies a market of unstoppable growth, in spite of the volatility it may go through in the process.
When it comes to cryptocurrencies and cannabis, you could say the paradigm of art “imitating life or vice versa” could be considered valid.
In the modern market of finances, solidly established cryptocurrency developing organizations, as well as more conservative or relatively newcomers to the business, are beginning to explore the world of legal cannabis finances. The same has occurred with different ranking players in the marijuana stock market, who have decided to venture themselves into the cryptocurrency field as investors and/or active participants.
Due to the undeniable overlap between these two types of businesses, it’s only natural that they end up merging in various ways. Everyday new cannabis/cryptocurrency “hybrid” companies are coming out with some type of cannabis-related cryptocurrency.
What they all seem to have in common is that their surge in popularity (figures), comes from the interests and needs of an ever evolving world.
Please join me as we go deeper into ten of the most popular and successful ICO’s / STO’s related to the cannabis market.
1. PotCoin (POT)
As one of the earliest cannabis cryptocurrencies to have ever come out, PotCoin was initially launched as a Canadian coin used to pay for marijuana related goods and services. It became the first decentralized cryptocurrency, specifically designed to facilitate payment solution by assisting with inconvenient and complicated banking procedures in the legal cannabis market. It started as a project to capitalize on Colorado´s cannabis legalization movement. They have always tried to be innovative, they even installed a PotCoin Automatic Teller Machine at a Colorado dispensary.
PotCoin has also participated in different interesting marketing campaigns, in order to advertise the project worldwide. Their team has partnered with celebrities like Dennis Rodman, who has openly promoted this particular coin, and Charlie Sheen, for whom they developed a whole line of vaporizers and cannabis products called “Sheenius”. You can buy, sell, and trade PotCoin using PotWallet and other crypto exchanges like Bittrex and CoinExchange, Changelly, and their very own PotcoinTrade.
FIRST ANNOUNCED: January 21, 2014
MAXIMUM COIN SUPPLY: 420 million
MARKET CAP: $4,177,607
2. HempCoin (THC)
Together with PotCoin, HempCoin was also among the first 30 currencies developed in 2014. HempCoin is not just for cannabis, as it is built on the source of Bitcoin. It is a highly focused digital currency, designed to be used by medical-recreational dispensaries and marijuana growers, as well as tobacco, cannabis and hemp harvesters. HempCoin has always tried to participate in the marijuana agriculture and farming trade business, to the fullest. It was the first cannabis cryptocurrency created for farmers rather than consumers, its original purpose being to facilitate purchasing farming supplies in bulk through THC coin. In fact, some cultivators have already started using the HempCoin to get paid for their crops.
In 2019, HempCoin plans to introduce its own payment platform HempPay, to buy cannabis from dispensaries. HempPay will serve as a website, an app, as well as a cryptocurrency credit card. THC is available as a cryptocurrency for trade on Bittrex, Nova Exchange and qTrade.
FIRST ANNOUNCED: January 2014
MAXIMUM COIN SUPPLY: 300 Million
MARKET CAP: $3,024,814
3. Paragon (PRG)
Unlike many of the cannabis cryptocurrencies currently available, Paragon is not for purchasing marijuana. Instead, PRG token was developed to help different marijuana businesses grow. They founded ParagonSpace a cannabis co-working space in Los Angeles. In order for all cannabis companies to pay rent there, Paragon developed ParagonCoin (PRG), the only currency accepted at ParagonSpace, whether you are leasing an office or simply buying some snacks in the facilities.
Eventually, Paragon expects their Ethereum-based cryptocurrency to work for business to customer interactions, apart from business to business transactions. Furthermore, the ParagonChain hopes to provide clients with smart contracts that cater to the needs of cannabis companies. This could mean anything from recording cannabis lab testing results, to filling a doctor-issued medical marijuana prescription. The most active exchange trading Paragon is Tidex. Although it is not mineable, detailed transactions of Paragon can be found on block explorers such as etherscan.io, ethplorer.io, and enjinx.io.
FIRST ANNOUNCED: August 15, 2017
MAXIMUM COIN SUPPLY: 165 million
MARKET CAP: $11,310,140
4. Tokes (TKS)
This particular cannabis cryptocurrency operates on the Waves blockchain. Tokes main goal is to remove cash entirely form all weed supply chain and customer transactions. Employees and suppliers in the industry can recive Tokes tokens as payment, instead of accepting exclusively cash or regular currency Tokes is AML and KYC compliant. This means that the Tokes platform abides by anti-money laundering policies and customer financial processes, to prevent money laundering. Apart from streamlining businesses and reducing costs, Tokes provides the same kind of security to a financial institution, compliant to financial industry regulatory authorities.
You can purchase TKS tokens, keep them in a Waves blockchain Wallet and use them as currency at authorized dispensaries. Tokes is also designing an app that will allow its users to research crucial information like strains and cost, in addition to locating dispensaries and buying cannabis with just a click. Bittrex is the most active exchange trading Tokes Platform.
FIRST ANNOUNCED: November 23, 2016
MAXIMUM COIN SUPPLY: 50 million
MARKET CAP: $1,095,138
5. DopeCoin (DOPE)
DopeCoin was founded by Adam Howell or ‘Dopey’. According him, their “mission is to provide marijuana enthusiasts with a modern and secure way of doing business for the 21’st century”. In other words, DopeCoin’s aim is to work with any sort of weed business, legal or otherwise. In spite of being renamed into DopeCoin Gold, its goal has always been the same since its conception in 2014: Provide consumers with alternatives to buy cannabis anonymously without paying fees for transactions. Furthermore, DOPE allows access to quality advertising channels that meet and serve the needs of the industry.
At DopeCoin, whether you are buying cannabis from a licensed dispensary or a black market online shop is irrelevant. Distributors in both the United States and Europe now accept DopeCoin payments. It is possible convert other cryptocurrencies to DopeCoin on Bittrex but DopeCoin has their own cryptocurrency wallet.
FIRST ANNOUNCED: February 15, 2014
MAXIMUM COIN SUPPLY: 116.8 million
MARKET CAP: $643,521
6. CannabisCoin (CANN)
Another cannabis cryptocurrency that came into being in 2014. Part of CannabisCoin’s main objective is to make both cryptocurrency and cannabis more socially acceptable CannabisCoin was created as a proof-of-work, peer-to-peer open source currency, to simplify payment interactions between business and consumers, by making transactions smoother and easier for medical cannabis dispensaries/customers. Initially, it was created for marijuana patients to acquire their medication.
CannabisCoin has certainly focused on its market, making a proposal to convert cryptocurrency directly into marijuana through its “Yes we CANN” promotional campaign. A line of marijuana medication and cannabis strains grown of the specific purpose of exchange at the rate of 1 gram of medication for every CannabisCoin, under the name “CANNdy”. The most active exchanges trading CannabisCoin are Bittrex, Cryptopia and YoBit. Address and transactions of CannabisCoin can be seen on block explorers such as chainz.cryptoid.info
FIRST ANNOUNCED: October 19, 2014
MAXIMUM COIN SUPPLY: 106 Million
MARKET CAP: $425,348
7. CannaCoin (CCN)
As described by its founders, Cannacoin is “a group of cannabis enthusiasts working towards the future development of cryptocurrency applications related to cannabis production, seed production, extract production, glass blowing facilities, vape and dab station manufacturing, crypto development, and more.” It is an open-source cannabis altcoin that runs on its own decentralized blockchain. Forked off Litecoin, Cannacoin relies on Proof of Stake-Velocity.
Cannacoin can be used to develop other applications like CannaPay, a website only for cannabis credit cards. Cannasight and the Green Wallet, are other Cannacoin´s projects, which allow developers to create a variety of open-source applications. A considerable amount of dispensaries in California accept Cannacoins as an alternative currency and their reach keeps expanding. Cannacoin also has its own CCN wallet. Altilly is the most active exchange trading Cannacoin. Additional information about CCN can be found on chainz.cryptoid.info
FIRST ANNOUNCED: March 28, 2014
MAXIMUM COIN SUPPLY: 4.63 million
MARKET CAP: $85,037
8. GreenMed (GRMD)
GreenMed is a cannabis cryptocurrency token issued on the public blockchain platform, Ethereum. GreenMed’s whitepaper addresses the industry’s growing need to process credit card transactions, in a direct and safe manner. Though GreenMed´s app, users can have cannabis delivered to them or pick it up themselves at a dispensary. First, you must trade USD into GRMD. Then, GreenMed´s tokens can be transferred to an authorized cannabis business’ account, for the exact amount of medication in USD.
Later on, the cannabis company can choose to either keep the cryptocurrency in their GreenMed virtual debit card (which serves as a crypto wallet), or just deposit it into their bank account in American dollars. An active exchange which trades GreenMed is HitBTC. GRMD´s transactions and address can be explored on etherscan.io, ethplorer.io, and enjinx.io
FIRST ANNOUNCED: August 21, 2017
MAXIMUM COIN SUPPLY: 14.9 Million
MARKET CAP: $43,999
9. Budbo (BUBO)
Budbo is another cryptocurrency token issued on the Ethereum platform. Budbo operates as a decentralized blockchain technology, which is designed to cater to different types of cannabis businesses, while helping them stay in total compliance with the law. More specifically, Budbo´s target users are cannabis manufacturers, researchers, cultivators, retailers, and distributors.
For instance, growers need to track what nutrients they have given to their plants, and plant´s stage is in the flower life cycle. Dispensaries want cheap, yet efficient sales records and point of sale systems. Customers request guarantees for what they pay, which could end up being a smart contract. All of these services are possible thanks to the possibility of BUBO to access cannabis data and analytics stored on the blockchain. Bubo is sort of a utility token. HitBTC is the most active exchange trading Budbo. Additional financial information regarding Budbo can be consulted on etherscan.io and ethplorer.io.
FIRST ANNOUNCED: November 1, 2017
MAXIMUM COIN SUPPLY: 200 Million
MARKET CAP: Undisclosed
10. KushCoin (KUSH)
KushCoin is another cannabis cryptocurrency which applies blockchain technology to the entire medical marijuana supply chain in very aspect, from the process of growing to selling marijuana: land acquisition, storage, transportation, selling to qualified customers, delivering product. All while complying with federal, state and local laws. KushCoin started with the goal of addressing all these issues, back in 2014. KushCoin´s original priority remains to this day: to have varied levels of the supply chain and consumers avoid constant fees and hassle, by paying with a cryptocurrency.
Through KushCoin, any amount of cash can be quickly and safely transferred with no charge for the transaction. In addition, users can now use computing power to mine their own KushCoins. They have developed a KushCoin wallet, an exclusive seed bank for KushCoin users and a crypto credit card. KushCoin can be bought or traded on Cryptopia and YoBit.
FIRST ANNOUNCED: February 8, 2017
MAXIMUM SUPPLY: 9.35 million
MARKET CAP: $150,506