Innovative Cannabis Cryptos Cultivating Financial Growth
Marijuana Crypto Transactions: A Digital Solution
For transactions in the marijuana industry, digital currencies specifically related to cannabis offer an effective alternative. Until April 2023, the ease of conducting transactions in this industry has been significantly enhanced by these digital solutions.
Traditional banking services remain off-limits due to federal restrictions in the U.S. concerning marijuana transactions. As a response, marijuana-specific cryptocurrencies such as Tokes, PotCoin, CannabisCoin, DopeCoin, and HempCoin have become essential tools in this sector.
Addressing the banking challenges faced by businesses in the recreational and medical marijuana industry, these digital currencies provide a workaround. With federal laws hindering the use of traditional banking systems, the creation and adoption of these virtual currencies fill a significant market void.
Legislative Movements and Technological Advancements
The Marijuana Justice Act made its debut in 2017, aiming to remove legal penalties associated with various marijuana-related activities. With a shift in public perception regarding marijuana use and distribution, the demand for digital payment methods rose accordingly.
In parallel, IBM proposed the incorporation of blockchain technology for regulatory oversight from production to sale. The suggestion indicated that blockchain could potentially curb or eradicate black market dealings by managing product sourcing, sales, and pricing, thus supporting producers and retailers with demand and supply challenges.
Did You Know?
Interestingly, the global legal marijuana market size was valued at USD 9.1 billion in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 26.7% from 2021 to 2028, according to Grand View Research.
Tokes: Streamlining Cannabis Transactions
Introduced in 2016, Tokes effectively tackled the financial transaction issue via digital currency. Beyond payment solutions, the platform integrates blockchain-based systems for “track and trace” supply chain management and meshes with “seed to sale” software.
Tokes’ merchant suite is a comprehensive point-of-sale platform relying on cryptocurrency for payments, alongside inventory, product management, accounting, and sales functionalities. As of June 2024, approximately 200 million coins were in circulation.
PotCoin (POT) and Its Market Journey
Among the first cannabis cryptocurrencies, PotCoin emerged in 2014, riding the wave of Colorado’s marijuana legalization. Subsequently, a PotCoin ATM was strategically positioned at a Colorado dispensary. In a notable 2017 event, a press release featuring Dennis Rodman in a PotCoin.com shirt in North Korea effectively doubled its value overnight.
Keeping the circulation of PotCoin at a ceiling of 420 million coins, about 115 million were in circulation by June 2024. The currency supports open-source trading, beneficial for medical marijuana dispensaries, while CannabisCoin offers a direct exchange of cryptocurrency for marijuana.
Under the trademark CANNdy, a variety of medicinal and marijuana strains are cultivated specifically to be traded at the rate of 1 CannabisCoin to 1 gram of medication. By mid-2024, the total supply of CannabisCoin was 91.86 million, with over 77.23 million in active circulation.
HempCoin and Its Role in Agriculture
Launched in 2014, HempCoin aims to serve the agricultural industry, as well as medical and recreational dispensaries. The official website emphasizes its functionality in enabling secure transactions among farmers, distributors, and consumers. In mid-2024, the number of HempCoins in circulation reached 267 million.
DopeCoin: A Modern Way for Enthusiasts
Founded by Adam Howell in January 2014, DopeCoin’s primary aim is to offer a modern, secure means for marijuana enthusiasts to conduct business in the current era. The specifics of the markets it serves remain mostly undisclosed.
Conceived with the vision of a Silk Road for marijuana transactions, DopeCoin has seen its circulation reach approximately 117 million coins by June 2024, with its proof-of-stake nature providing investors with a 5% annual interest.
Purchasing Cannabis Cryptocurrencies
Individuals interested in investing in cannabis-related cryptocurrencies, tokens, or coins can purchase them directly from the source companies or via platforms like coinbase.com.
Federal Legislation on Decriminalizing Marijuana
Efforts to decriminalize marijuana federally remain ongoing, with bills such as the Marijuana Opportunity Reinvestment and Expungement Act and the Marijuana Justice Act introduced but not yet passed.
Investing in Cannabis NFTs
Non-Fungible Tokens, or NFTs, offer a unique entry into the international cannabis market for investors through these tokenized instruments.
Through utilizing specialized marijuana-related cryptocurrencies, businesses and consumers can efficiently conduct transactions, independent of traditional banking systems. Full decriminalization of marijuana by the federal government in the U.S. has yet to occur.
The expressed comments, opinions, and analyses are available online solely for informational purposes. For further details, please refer to our resources.
You may also like
