Cannabis-based cryptocurrency Potcoin has earned enough reputation as a cash alternative to medical marijuana businesses and users. However on the trading front, the coin is falling drastically against the USD.
At the start of last week, the POT/USD pair was looking fairly optimistic. On Feb 8th, the pair was valued around 0.00121944 and rose comfortably to around 0.00137490 by the end of Feb 11th. A part of this surge was credited to Potcoin investors who jointly sent a letter to the Colorado MED on Feb 7th — a day before the actual uptrend took place. The letter was written in regards to know whether virtual currencies could be used as one of the payment methods for legal marijuana.
In our knowledge, it was the first time a team belonging to one of the cannabis-based cryptocurrencies actually took an initiative to confirm its position in a legal framework. Investment-wise, this move could have inspired traders to roll-in some money to its market cap; hence the surge.
However, the hype surrounding the surge failed to extend itself and later overtook by huge selling pressure. As a result, the POT/USD formed a bearish flag — falling from 0.00133436 to 0.00115359 in the last 48 hours. One can also peg this drop to Bitcoin’s volatile surge during the same span, which might have deviated traders’ conscience towards more profitable trades.
Overall, Potcoin is a more speculative investment than the coins above it. Even if state governments allow virtual currencies to flourish in medical marijuana industries, Potcoin will definitely face strong competition from other successful coins like Bitcoin, Darkcoin, etc.