Where You At, Weed Coins?
It's been almost 10 years since I first heard about blockchain intermingling with cannabis, and the subsequent projects crafted not only to align with the cannabis industry but also to cater to its consumers, constituting what I would call at the time, a cannabis rush in the blockchain space.
I thought all the ideas that came out over the years sounded like fantastic whimsical opportunities, and I wholeheartedly supported the first few projects attempting to gain adoption.
I couldn't help but support the conceptualized ideas that each project had, and I still continue to support the overall initiatives behind cannabis and crypto. The only problem is, what started out like fire now only seems to be slightly smoldering under layers of ashes.
What happened to Hempcoin or Potcoin? Where are these projects now?
As we reflect on this juncture where blockchain meets cannabis, it's essential to acknowledge the trials faced by pioneering projects like PotCoin.
The journey has been a rollercoaster, with moments of brilliance and massive hurdles yet to overcome. I had to slowly trace back my steps from all those years ago to find footing in the world where these projects exist.
My goal was to learn about where all these projects ended up, so I made contact with founders and team members of various projects. I found that almost all of those projects were belly up like goldfish in saltwater. Which is a shame, because in my mind, cannabis and crypto should go hand in hand.
Why do I say that? Why does crypto and cannabis go together?
Sometimes I think you'd have to be high to invest in crypto like some people do, but I believe crypto and cannabis complement each other as they are both burgeoning industries grappling with nearly identical legal complexities. Both are engaged in a struggle for their autonomy and survival amid the challenges posed by legislators and titans of finance and industry.
While everyone I managed to talk to about the direction of their projects seemed willing to move forward with their plans, it seems 2021 ruptured that desire to push forward for quite a few crypto cannabis entrepreneurs.
Undoubtedly Covid played a role, and the market downturn, but mostly it seems legal frameworks were impossible to navigate. Not to mention the assortment of chain failures, loss of liquidity, and loss of community some projects faced.
If you're unfamiliar with the crypto cannabis space, here is an incomplete list of the top 5 projects.
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PotCoin (POT): Launched in 2014, PotCoin aimed to facilitate transactions within the legalized cannabis industry, providing a secure and decentralized payment solution.
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HempCoin (THC): Introduced around the same time as PotCoin, HempCoin focused on providing financial solutions for the agricultural sector, including hemp producers.
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Paragon (PRG): Paragon sought to bring blockchain technology to the cannabis industry, offering solutions for supply chain management, seed-to-sale tracking, and decentralized applications.
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CannabisCoin (CANN): Created in 2014, CannabisCoin aimed to provide a cryptocurrency for the cannabis community, offering a platform for transactions within the industry.
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DopeCoin (DOPE): DopeCoin aimed to be a digital currency for the cannabis industry, facilitating transactions and promoting financial privacy.
Where crypto reality intersects with cannabis opportunity, a robust consumer base for both crypto and cannabis persists in today's markets. But- A pivotal question arises: Is it feasible for a new project entering the markets? One might argue that it hinges on the approach, the ideas presented, and the project's ability to navigate potential legalities, regulations, and upcoming challenges.
Compliance may no longer be optional for those who perceive the crypto world as the wild west, as rules and regulations now exist that were absent when the first crypto cannabis token was minted.
A project today would need to follow every footstep and rule of compliance, now that crypto, and arguably cannabis are both perched on this precipice between financial authority, legislation and financial freedom.
Stake and Bake or Cannabis Payments
Recently, I had the opportunity to engage in a conversation with a new founder regarding his upcoming project. The project's name is something I'll keep to myself, thank you very much; nevertheless, it is a novel venture at the intersection of cannabis and crypto, aiming to launch on Cronos.
During our discussion, I shared a few ideas with the founder and provided insights into resources and potential connections within the cannabis industry. My primary focus was on Cannabis DeFi and consumer engagement during our conversation. I spoke about strategies for connecting consumers with their favorite headshops and creating avenues for shop owners to reach both a wider audience and a more affluent one.
What became apparent to me was that perhaps I should have spent the past few years diving into full-stack development courses instead of pumping out crypto mumbo-jumbo filled articles.
In the embryonic stages, payment systems utilizing crypto were the guiding principles for most of the cannabis crypto movement. Although not all projects centered around payment aspects, it was, generally speaking, a consistent element in almost every pitch I have ever encountered in the realm of cannabis and crypto.
I think cannabis and crypto can do a whole lot more than just create another form of payment, I think it's possible to utilize DeFi and Headshops to craft a new hybrid platform for loyalty rewards and NFT coupons.
Then again, I'm high.
The point is, there is a vastly untapped potential in cannabis and crypto that could easily be swept up off its feet should the right project come along offering the right value and utility.
The potential use of a cryptocurrency as a means of payment for legalized marijuana would depend on various factors, even if cannabis legalization occurred on a federal level. While federal legalization would remove legal barriers, the acceptance of a cryptocurrency for such transactions would still be influenced by factors like regulatory frameworks at the state level, the willingness of businesses to adopt crypto payments, and the overall market dynamics. Additionally, even if a cryptocurrency passes SEC standards, its adoption for specific use cases, such as payments in the cannabis industry, would involve considerations beyond regulatory compliance, including consumer preferences, security, and practicality.
While I'm all for it, I have never found a real solid project that has encapsulated the proper representation, adoption, and use factors needed to attract a large user base. This is why I believe a different approach would work best for the next cannabis crypto movement, and yes, I think there will be another movement in the arena of cannabis and crypto, but when that happens, you can bet that it'll be because someone who was willing to do more than take the place of the dollar, created a social cannabis DeFi platform that goes beyond payment processing.
Mark my words, that'll be the joint that burns the brightest in this space.
In response to a reader's insightful comment below, the mention of VeChain (VET) adds a compelling layer to the discussion. The reader rightly pointed out that VeChain's capabilities make it a noteworthy addition to the subject matter, particularly in the context of tracing products within the cannabis industry.
VeChain, is a uniquely designed and extremely flexible piece of blockchain technology, offering unparalleled adaptability as a solution for supply chain management.
Its ability to provide transparency and traceability from the origin of products to the end consumer aligns seamlessly with the needs of the cannabis sector. In the context of cannabis, where product authenticity and quality control are paramount, VeChain's technology could be an answer to the question of how products made, and the way we trace and verify the journey of cannabis products.
The cannabis industry could implement a comprehensive system that ensures the legitimacy of products, tracks cultivation practices, monitors distribution channels, and verifies compliance with regulatory standards. This not only addresses concerns related to product authenticity but also establishes a level of trust between consumers, producers, and regulatory authorities.
The comment by @Calbucks sparked me into doing a little reexploration into how VeChain's capabilities could serve as a game-changer in enhancing how Cannabis and Crypto can work together.
Thanks Cal!
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