Blockchain Startups Expect Profit From Marijuana Election Results
Tuesday saw eight of nine states, where cannabis legislation was on the ballot, approve initiatives for cannabis regulation either medicinally or recreationally. There are numerous blockchain-facing startups and crypto-currencies who stand to benefit from the normalization of marijuana. In the wake of Tuesday’s “green letter day” for cannabis legislation, we put together a list of some of those blockchain companies in the best position to prosper from the so-called “green rush.”
Tokken founder Lamine Zarrad, a former US government regulator in Colorado, believes the blockchain can allow cannabis businesses to transfer cash, thus eliminating the risk of money laundering.
The “blockchain agnostic” startup, with executives having decades of experience in government, is looking to provide a sustainable and transparent model for cannabis businesses with the help of the same distributed technology which inspired Bitcoin.
Edit: Though Metal doesn’t publicly discuss blockchain, it’s important to note Hayner’s history, and interest, in the space.
Metal founder Marshall Hayner has long been at the forefront of cannabis and blockchain. His former startup, Trees, promised to deliver weed by drone. His newest effort at blending cannabis and blockchain is Metal, which wishes to, in part, help high risk businesses bank.
Metal’s payment processing platform uses blockchain technology to solve payment problems. Metal wants to link credit and debit to their system for sending payments and attaching a prepaid debit card. They believe this system could simultaneously lead to crypto-currency adoption.
The main idea around Dopecoin is to peg your stash to a cryptocurrency similar to Bitcoin. The proof of stake coin has been trading for a few years and promotes its anonymous transactions. The currency’s native digital market, DopeMarket, could become the eBay of cannabis products. A network of “grow spots” will act as a sort of reserve base for the crypto-currency. It launched its first farm in Canada in September.
PotCoin, like others on this list, wants to help facilitate transactions in the cannabis industry. According to marketing materials, Potcoin claims to remove the need for cash transactions.
“PotCoin is the first digital currency created to facilitate transactions within the legalized cannabis industry,” the project states. “PotCoin is a community based effort. A truly decentralized autonomous organization the PotCoin community members determine their level of involvement, commitment and development.”
This molecular information company seeks to develop genomics-based safety and quality standards using the Bitcoin blockchain in order to monitor DNA sequencing cannabis strains. Medicinal Genomics strives to allow growers, processors and testing laboratories for implementing strain verification and stability programs to ensure product consistency and safety.
CHEX seeks to design an exchange for cannabis related products. By creating an exchange to allow cannabis industry participants to more efficiently source commodities like flower, trim, oil and dispensaries could mean wholesale buyers enjoy more options and can offer consumers lower prices. Such an exchange, according to CHEX founder Eugene Lopin, could also promote better compliance.
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