The Ultimate Guide To Cannabis Tokens

Disclaimer: The author does not provide investment advice. This article has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for investment advice.

By now, Bitcoin is as famous as can be.

But deep down, Bitcoin is just blockchain technology disrupting our concept of money.

Blockchain is rapidly revolutionizing more and more industries. And it’s all thanks to tokens, tools that aim to do more than just to replace money.

Nowadays, the legal cannabis industry is just another stage for the blockchain to rock in.

It doesn’t matter if you’re a cannabis enthusiast yourself, an investor or just an up-to-date citizen of the world, the speed at which social and political perception of cannabis are shifting is a sight to behold (see USA and Canada).

Last year, several tokens and coins tied to cannabis emerged, meeting this fast-growing market. Analysts point to an even better development for 2018. Both tokens and the industry are truly flying high.

It doesn’t matter if you’re a user, connoisseur, business-owner or investor, you absolutely must understand how this game will play out.

So, buckle up, because here we are about to break down the cannabis industry, then discuss the most important tokens that will stick to its unstoppable growth. We’ll also get to highlight some talking points along the way.

Because the hard part of this popularity peak of cannabis tokens has led to so many projects and start-ups that choosing the right one has become a huge hassle; so we’ve taken the liberty to do the homework.

Here’s what’s going down.

Cannabis industry

Recreative cannabis was first legalized in 2014 in the state of Colorado. In the following years another 9 states joined the legalization initiative in the US (1). Since then the market has experimented an ongoing boom, creating thousands of jobs and millions in tax revenue.

Some years down the line, historians may well call it the green rush.

An enormous user base and no previous legal competition make this a market ripe for investment. The industry of legal cannabis is expected to grow at least by 16% each year until 2025.

By then, it’ll have reached a market cap of $24 billion.

And the growth is fast. Dispensaries’ monthly revenue has increased from $10 million in 2014 to above $70 million in 2016.

This has impacted cannabis price. In that same timeframe, average price per gram has plummeted from $45 to $12.77 in Washington for example (2). This has been ideal to keep a steadily growing demand.

Credits to Frontier Financial Group

But this infant market could grow faster. Indeed, the tricky legal status of the plant hinders the growth of this industry.

Not only do they have to fight against social prejudices and federal laws in conflict with state regulation. Cannabis businesses still have no access no banking. Their multi-million dollar industry runs mostly on cash.

Besides, there are no standards for product quality, use of pesticides and origin.

It is wild.

But where governments and regulation have failed to make room for a strong, growing industry, blockchain has come to the rescue. Many tokens and solutions have sprung last year, ready to give the cannabis market a turbo boost.

First, let’s check why tokens can be catalyzers for change.

The Tokens: An Overview



You’re probably asking yourself how on earth can a big business flourish without access to banking.

Picture gas stations, fast food chains or pharmacies working on cash only.

Sadly the federal ban on cannabis prevents banks from servicing cannabis dispensaries and related businesses.

That’s why many cannabis tokens are basically payment solutions like bitcoin is.

This means they’re straightforward ways to facilitate payments between industry players like dispensaries, clients and growers. In a way, then, most cannabis tokens are basically cannabis-related money.

Thanks to a reliable, secure, digital tradable value coin, the logistics nightmare of cash-only dealing may be over.

We can call these tokens cannabis-money.

But there are others which aim even higher.

Projects like Paragon, Hemp Coin, Smoke Exchange and Budbo are trying to not just solve major hurdles in logistics and management. They want to tangibly improve the infrastructure of the whole cannabis industry.

How? By

  • Making supply chains more efficient and manageable,
  • Allowing payments between different parties
  • Increasing transparency when it comes to the origin of seeds and produces

And of course, there’s the odd one out. There’s one blockchain project from AgroTechFarm, that is about cannabis production.

That’s how we will divide the guide: production, cannabis-money, and infrastructure


You’re probably wondering how can a token affect cannabis production. Although it’s not so straightforward, you’ll see that blockchain can be used in many ways.

The cool part: changing how cannabis is produced will transform the industry. Especially if it can disrupt the distinction between industrial producers and individual users.




AgroTechFarm occupies a blue ocean in the cannabis industry. The aim of the project is to provide a zero-chemical, zero-environmental impact way to grow cannabis and other crops.

Their product uses aeroponics in their smart appliance for organically growing cannabis, tomatoes, peppers and other large crops at home. The appliance allows people to become self-sufficient and produce their own fruits and vegetables. Everything is automated, the yield is optimized and less resources are used.

Since everything grows in the user’s kitchen there is no need for transportation neither for farming land. Considering that these two are among the biggest contributors to global warming.

We could not find any other cannabis token that was dealing with production. And it’s a nice combination of the cannabis industry with organic farming. In one sense, it implies diversification (the art of not putting all your eggs in one basket).

This means that in case the cannabis industry goes down, their other clients will be intact.

More about it in their whitepaper or on their website.

Industry Boosters: Infrastructure


Infrastructure is the backbone of all industries.

A market’s growth potential is worthless without proper infrastructure. Without it, nothing can happen. Think about it this way: even if you have the fastest car in the world, it would be good for nothing if there were no roads.

That’s why some visionary projects want to create a stronger base for all cannabis-related businesses to flourish.

The boost can come in many ways, as we’ve seen. And some projects focus one some over others, but each has something to contribute. This showcases blockchain’s amazing capability to change our markets!

Let’s jump in and see what these projects can offer.



Budbo has created a global cannabis blockchain, on which any ancillary service or cannabis related business can utilize and harness its immutable ledger.  

Budbo has been an operating company since 2015, offering an enterprise level suite of business products.  Budbo has a consumer mobile application that focuses primarily on product discovery, a dispensary and product manufacturer dashboard that breaks down predictive AI consumer analytics, and a GPS enabled program it calls Budbo Trax that monitors commercial cannabis shipments through geofencing technologies and electronic documentation.

Their app already has 75,000 individual active users and 2,000 dispensaries within their network. Their application has an interface similar to “Tinder”, in the way it allows users to quickly swipe through 100s of locally available strains and products.  Allowing for online ordering, or getting directions to the dispensary that has the desired product.

Budbo wants to integrate all players in the industry, with a stated mission of bringing together a solid global community.

Their platform currently involves seed suppliers, growers, dispensaries, users, and patients.

The platform will provide not just information, but tracking as well to help with complex local, state, and federal compliance regulations, which will benefit all recreational and medical cannabis users and patients.

Budbo is currently closing out their token sale, having sold more than 130,000,000 utility tokens. The tokens act as the API key for access to the transactions stored on the ledger.

Learn more about them from their whitepaper or on their website


The Hemp Coin project is a bit of a hybrid. It combines a payment solution with a mission to rebrand the industries they serve. In contrast with Dope Coin and Smoke Exchange, this project is one whole thing.

Their eight-page whitepaper does not shed much light on what they mean by this rebranding. The only explanation we get in their roadmap is that implies: “Connecting with agriculture industry to accept HempCoin’’.

A user on Reddit defended the team saying that the information was not made public due to pressure from competitors.

So, what we can make out of this is that they seek to develop a community of people who will be actively pushing pro-cannabis materials like artwork, blog posts and articles. This would, in turn, improve the image of cannabis and its industry.


paragon, budbo

Paragon intends to put the cannabis industry on blockchain through its extensive suite of solutions

Paragon successfully launched its initial platform and functionality in late 2017 and is now progressing towards a fully-fledged release in mid 2018.  

Importantly, Paragon aims to do a lot more than just solve part of the cash problem that the cannabis industry currently faces. Paragon is developing a seed-to-sale tracking solution for cannabis products. All users and governments will be able to verify the entire life cycle of a product for free and be certain that no data was manipulated or deleted. These solutions are all made possible by smart-contracts and fueled by PRG to incorporate all elements of the supply chain.

On top of the extensive blockchain-based solutions that Paragon is creating, the company is also launching Paragon Spaces – these are co-working spaces that serve the cannabis industry with flex desks and office space – all paid for in PRG.

Learn more about them from their whitepaper or on their website

Payments Solution

[PotCoin][Cannabis Coin][Canna Coin][Dope Coin]

All of these tokens are peer-to-peer cash systems devoted to payment within the cannabis industry. The -coin in their names says it all.

But do we really need a cannabis-bitcoin?

As we explained earlier, the industry is handicapped without access to banks. Security becomes a headache, logistics are nightmarish and your consumer base is hindered. This is all because of bad policy.

Crypto has always been praised as a way to go around governments and banking institutions. It’s even how most illegal trading is paid for, sadly.

So it’s inevitable that this new tech can now serve as the safe, easy to use money this industry so desperately needs.

As a bonus, a specialized payments solution allows for reward programs and community building and integration. So, if they become widely used, they do offer some benefits over money.

Let’s take a look at this new cannabis money!

Cannabis Coin and Canna Coin

cannabis coin, budbo

We bundled these two together since we found them to be quite similar in terms of what they do, when were they launched and how they perform.

Both projects market themselves as the peer-2-peer cash systems for cannabis and aim to facilitate payments to cannabis businesses in a secure way. Similar to a cannabis bitcoin.

Yet, their websites do not offer enough information about the projects or the teams. Information is good, always.

We could not find a dedicated whitepaper for either of them. Whitepapers have become the bread and butter of tokens market for a reason: they’re professional tools that explain all aspects of any token-venture.

The main issue is that dispensaries may not benefit from a dedicated token only for them. They have to pay for for most of their supplies and logistics in cash. It is possible that they will need something more widely used or more liquid.

If you are interested in the code, you can take a look over at Github, where you’ll find both.

Pot Coin

Pot Coin stands out among other tokens in this section. Their website looks professionally made and contains all the information you’ll need.

Also, its whitepaper is well laid out and there is a thorough explanation of how the company aims to reach every milestone on their roadmap.

PotCoin offers some key bonuses: it aims to tokenize seeds and strains through a reward program. People will be able to convert their PotCoins into real cannabis seeds. Also, those who develop a new strain will have the opportunity to sell it on their platform and earn tokens.

These two reward options sound like good incentives to prefer Potcoins over bitcoin or fiat money.

The resources we found were conflicting, one quoting them as the best among the cannabis bitcoins and another that was not so flattering.

So, what can we make out of them? It seems Pot Coin’s success or failure will largely depend on their skill and effort at creating and maintaining an engaged community.

Dope Coin/ Smoke Exchange

Just as the name suggests, Dope Coin is made to serve the underground world.

Their mission is to provide a payment solution for both the legal cannabis market and the illicit one like the darknet silk road.  

Since last year, when governments around the world announced they could now track bitcoin, privacy coins have been big. For example, the price of Monero (a secrecy-oriented cryptocurrency) skyrocketed from around $50 to around $300. This came about because the darknet was switching from bitcoin to Monero, to avoid wary eyes.

Just recently the Dope Coin team announced that they are starting a new project called Smoke Exchange that aims to be a marketing and advertising platform specifically for cannabis businesses. They will integrate dope coin and bitcoin as payments on this platform.

Smoke Exchange is to release a working demo in Q1/2018.

Get more information about Smoke Exchange from their whitepaper. Sadly, Dope Coin does not have one.

The future is even wilder

The cannabis industry is a wild place.

Cannabis tokens have come as a much-needed relief for its main issues, a powerful boost to its infrastructure, and as a new paradigm in its production.

These tokens are definitely a good buy in 2018.

But be cautious when it comes to projects without a working product or that have too much hype around them. We all know that sometimes huge profits can come from investing in tokens with a lot of FOMO surrounding them. Other times, it’s just a loss.

There are many ways to improve your decisions, but the key to all is basically the same: acquire as much reliable information as you can.

Pro tip: look at the whitepaper!

Think about the product, the solution they offer. Whatever your plans for the future, make sure to keep an eye out for the legal cannabis industry. It’s size, its potential and individual characteristics make it one of the most interesting of our times.

And if you’re looking to invest, think about real-world problems and real-life solutions.

Often the not so flashy looking projects turn out to be, you know, the big hits.

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There has been a lot of progress towards the legalization of marijuana in North America.  Currently, there are 29 states and one district in the USA that has decriminalized and/or legalized marijuana either for recreational or medicinal use. Where Canada aims to be the first industrialized country to legalize marijuana from production to consumption by July 2018, to date however, there isn’t a solid plan or technology in place that is able to manage A-Z for both producers and consumers alike.

Financial obstacles with banks hesitant to accept cannabis money, and advertising restrictions leaves little room to manoeuvre. At the same time, cryptocurrency, an evolution in digital transactions seems to be the logical answer.

Cryptocurrency and blockchain technology has gained traction in a short amount of time, and is making headlines daily with the incredible rate at which it is growing. Industries and governments are being faced with the dilemma of either adopting the technology or being left behind, but are cautiously open to the endless possibilities that it brings.

Innovation in supply chain technology is something that blockchain is already implementing. Tracking products in a way that information cannot be altered is essential in all industries, but especially when implementing legality behind the legalization of marijuana.

In Canada, the British Columbia government is actively looking at blockchain as a solution to managing the legalization of marijuana. Blockchain technology, as it is decentralized, would help decrease the chances of a cyber attack, and increase security and transparency in a major way. Additionally it can be used to secure all types of financial transactions, increasing security and safety of everyone involved.

There are a lot of opportunities, and innovative ideas that can help regulate the cannabis industry. The Canadian government is actively looking at how blockchain technology can effectively do that.

One such idea has been developed by a Canadian based company that aims to provide solutions to the main financial, advertising and loyalty obstacles and challenges that the cannabis industry faces not only in North America, but worldwide. The company is doing an ICO and is developing a utility token called PerksCoin (PCT) that would run on decentralized blockchain technology and will be able to be used not only for transactional purposes but also as a loyalty program. The company has already partnered with 5 companies; 3 of which provide POS solutions to retailers, and one of which plans to have 200,000 locations using their POS globally by 2020 – with over 100 million users per year. If this occurs, then that means that PerksCoin will have 100 million users per year.

“We see a real opportunity here to harmonize these industries together and create a viable solution for everyone involved. However, our token won’t be limited to just the cannabis industry, it will be used in many different industries. Through proper strategic partnerships, our token will be used on almost every continent”  – Oleg Cheine, CEO CannaSOS

While crypto technology is still in its infancy, there are remarkable opportunities that governments should explore when implementing the processes involved in the legalization of marijuana. CannaSOS is an example of forward thinking, using evolving technology and addressing the challenges faced by both producers and consumers and implementing a solution that everyone can have access to.

Regulations for both the legalization of cannabis, as well as cryptocurrency are still being decided, however now is the time to make a monumental global change, and shift in the right direction.  With blockchain technology anything is possible.

The Cannabis revolution has been raging for the past few years as many states in the US have legalized it, but its standardization, regulation and overall functioning as an economic ecosystem has been heavily fractured. This has caused Jessica Versteeg to head up Paragon to try and revolutionize the Cannabis industry on Blockchain technology.

Versteeg witnessed first hand how Cannabis could have saved her former boyfriend, Tyler Sash of the New York Giants, as she thought back to the times he would ask for her approval on using cannabis to help manage his pain vs the cocktail of painkillers dished to him by the NFL doctors.

However, Versteeg had fallen victim to the stigma and outdated image of Cannabis and has now witnessed first hand the difficult regulations and lack of standardization despite the drug gaining legal legitimacy in a number of states.

Versteeg has now decided to take another disruptive and revolutionary technology, the Blockchain, and utilize its power along with the healing power of Cannabis to hopefully push its image right up there to the white list alongside Big Pharma.

The pain of Sash

Versteeg’s story of how she became a believer in the power of Cannabis stems from her experiences with Super Bowl winning boyfriend Sash. The New York Giants player was in constant pain because of his vocation and would beg Versteeg to let him opt for a natural painkiller in Cannabis rather than the handful of pills prescribed to him.

The former Miss Iowa US would not allow it as her image of Cannabis was that it was a dangerous drug that could take your life, and conversely her understanding of opioids was that they were 100 percent safe. She also worried about the fallout of testing positive in a random drug test.

Versteeg recounts how Sash would throw up almost daily after retiring because of concussion symptoms, she was told that’s all it was from. Later she found numerous pill bottles with the labels ripped off and while doing some research she realized he was hiding an addiction from her and that addiction to pain killers can take a toll on one’s stomach, causing them to throw up. She mentioned that he was already falling into depression and after she confronted him about the pills he would bring up wanting to take his life.

Breaking the stigma

It took Versteeg a while, but through her research she started to understand the power of Cannabis and how its reputation was all wrong.

This led Versteeg to start a monthly subscription box for Cannabis products that was aimed for anyone to use without the negative stigma attached, breaking the grimy black market feel of Cannabis.

However, the young entrepreneur soon encountered the real problems within the Cannabis industry. Despite legislation in over 20 states, the marketplace for legal Cannabis is broken, fragmented and unregulated.

Creating Paragon

Versteeg has now identified the ability that Blockchain technology has in disrupting certain sectors of society and business, and she hopes that Paragon can be the vehicle that pushes the Cannabis revolution into something more mainstream.

Paragon uses Blockchain technology to store data from the seed to sell with everything from the water quality to fertilizers used, from the labs it was tested in to the actual lab results, in an immutable ledger that can be checked by anyone to ensure quality and standardization.


Additionally, doctor certification, patient ID’s and prescription details are stored on the blockchain and remain tamper-proof. Importantly, not all patient information will need to be stored on the blockchain as some may be personal and will be stored offline to remain HIPAA compliment.

The Paragon coin emerging from this blockchain is also supposed to solve the problem with funding a marketplace that is still unregulated and not accepted across all states or even the world.

Paragon Space

VerSteeg and her team at Paragon will also be erecting co-working spaces as part of their business model. Cannabis related startups in the industry will be able to utilize these spaces not only for working remotely but also as a specialized hub with industry specific guidance from Paragon – this model forms part of the Paragon incubator program.


Marijuana, the wonder plant as some call it is going through a liberation phase in the United States. In 37 out of 50 states have relaxed the laws regarding the sale and use of marijuana and its derivatives in the past few years. Most of these states approve of the medical use of marijuana while a handful also makes an exception for recreational use. But these relaxations come with riders to make it difficult for businesses dealing with cannabis.

According to reports, Senators Steve Conway and Ann Rivers have filed a new bill in the Washington State Senate to prevent local cannabis businesses from using Bitcoin as a mode of payment. An excerpt from the bill was quoted on one of the online publication saying,

“A marijuana producer, marijuana processor, or retail outlet must not pay with or accept virtual currency for the purchase or sale of marijuana or any marijuana product.”

There have been multiple reports in the past stating the unwillingness of mainstream banking and financial institutions when it comes to providing services to marijuana businesses. In the absence of proper access to financial services, the marijuana industry has started depending heavily on Bitcoin as an alternative. Many dispensaries have been accepting cryptocurrencies since 2014. If the bill gets passed in the Senate, these businesses will be in trouble as they will have no other alternative but to handle significant amounts of cash on a daily basis. It will also turn these businesses into potential targets for thieves.

The current issue is mainly due to the difference of opinion between the state and federal governments regarding the legality of marijuana. Unlike state laws, possession, sale, and use of marijuana remain a federal offence.

There are speculations in the press about an upcoming legal battle between cannabis businesses and the government in the event of the bill being passed, targeting a particular industry with unjustifiable restrictions.

Ref: HighTimes | PewTrusts | Image: NewsBTC

Marijuana and other Cannabis based products may be legal in some states in the United States, but doing a Cannabis related business is not an easy task for many people. Even though the US Justice Department has clearly mentioned that it has no issues with financial institutions serving those involved in the newly legalized industry sector, the banks and payments platforms prefer to have it their own way. With many Cannabis producers having their bank and PayPal accounts frozen, Bitcoin has emerged as a viable solution.

Being a decentralized currency, Bitcoin users doesn’t require the involvement of any financial institution to conduct transactions or store value. Many hemp and Cannabis farmers have already started integrating Bitcoin support to their businesses. However, the slow rate of adoption and misunderstandings surrounding the digital currency hasn’t helped them much either. In order to change the industry landscape, Veronica Carpio from Colorado has partnered with Edgar Hemm, a hemp farmer and Cannabis activist to create 1620 Solutions.

1620 Solutions is an open source knowledge resource hub that educates hemp farmers as well as buyers about the advantages of Bitcoin while clearing any misconceptions they may have about the digital currency. With 1620 Solutions, the duo intends to make Cannabis cultivation a sustainable activity by protecting the financial interests of those involved.

One of the online tech magazines quotes Carpio explaining 1620 Solutions’ activities by saying,

“Bitcoin is still really new to these people, but we are trying to show them that this is realistic… Bitcoin will absolutely work for them if they can just wrap their mind around how it works. It is just a huge learning curve.”

According to the report, their initiative with 1620 Solutions has so far yielded great results. The knowledge base has received an overwhelming response from many cannabis farmers. There are still few rough edges when it comes to completely understanding the concept of cryptocurrencies and blockchain for some of them. But they expect to polish them soon.

1620 Solutions is just the tip of an iceberg when it comes to the number of organizations working on Bitcoin advocacy across different sectors. Their sustained efforts bear fruits as more people continue to join the Bitcoin community.

Ref: Motherboard | Image: NewsBTC

Federal Reserve has officially rejected a financial institution’s request to serve the medical marijuana industry’s banking needs in Colorado.

The request, that was filed in November by the Fourth Center Credit Union (FCCU), was seeking to create a “master account” that would act as an interactive platform between the state-licensed marijuana businesses and banking institutions. It had received the governor’s backing when it decided to bring expert money laundering officials to build the policies. Having received the state license, the FCCU was only waiting for the Fed’s approval to begin operations in Colorado.

According to the union’s backer, Mr. Mark Mason, they had accurately followed every protocol that could have enabled them to create such a platform. But to him, Feds were never interested to come out of their rigorous compliance — that terms medical marijuana as a Schedule I drug and bars financial institutions from conducting business with its dealers.

“I felt all along like they were trying to figure out a way to deny our application,” Mason told the New York Times. “A federal judge who is only concerned in applying the law can make the decision.”

As a result of the said verdict, the medical marijuana businesses are once again back to conduct their operations in an unsafe environment. Many of them have already equipped themselves with armed guards and cars to protect their cash from being stolen by criminals. The state’s government is also concerned about the public safety under such circumstance, and has further expressed the difficulties tax authorities might face while collecting taxes from the pot industry.

Lawsuit Against Federal Reserve

The FCCU has recently filed lawsuits against the Federal Reserve and the National Credit Union Administration to understand the latter’s authority over them — once for all. The marijuana-supporting firm would definitely be backing its case on the legal status of cannabis industry in Colorado, which somewhat remains illegal on the Federal level. The NCUA’s decision to nullify FCCU is also backed on the same Federal status, for it has questioned the master account’s legal boundaries.

A Parallel Banking System for Marijuana Industry?

At one point or another, legal cannabis industries throughout the US will have to come together to voice their agenda against the conflicting Federal laws. A parallel and decentralized banking system would be an easy answer at that point of time. The industry’s top experts have previously ignored to adopt such systems — read Bitcoinsaying that they still fall in a grey area thanks to their low adoption and limited case studies.

It is about time they start to think back. Developers, on the other hand, can tap on this industry’s needs to create viable — and legal — transaction platforms — with offshore bank accounts, perhaps.

If cryptocurrencies like Bitcoin, Litecoin, and others, are too volatile for you, then maybe its time to look out for safer coins.

Accepting the fact that Bitcoin and other cryptocurrencies have an inherent volatility risk, creative crypto-thinkers are working on numerous projects to create currency standards which will be backed by physical commodities such as gold, marijuana, and urea.

The online marketplace to buy and sell precious metals such as gold and silver, Anthem Vault is planning to launch a gold-backed crypto-coin, the HayekCoin in May. Since it will be backed by gold, users can redeem it for 1 gram of gold at the market price, and the company is promoting this as the USP.

Cryptocurrencies backed by gold have been gaining strong traction. Nofiatcoin, the gold and silver-backed digital currency launched last year, has managed to stay strong—even during the 80% crash in Bitcoin price. Nofiatcoin is actively traded and has witnessed a remarkable jump from its launch price of $1 to near-$18 on April 1.

nofiatcoin urocoin potcoin cannabiscoin bitcoin altcoin

Among the most interesting cryptocoins are the ones backed by medical-grade cannabis and fertilizers.

CannabisCoin is a cryptocurrency which is backed by 1 gram of pharmaceutical-grade marijuana. This currency has found active attention from the trading community on the cryptocurrency exchange Bittrex.

Another commodity-backed cryptocurrency which has been seen as a substitute for the volatile Bitcoin is Uro Foundation’s UroCoin. This coin is pegged to the value of 1 metric ton of widely used fertilizer, urea.

Co-chair of the global payments practice at renowned law firm Manatt, Phelps & Phillips Carol Van Cleef expects over 2000 cryptocurrencies in the future.

We may end up with over 2,000 cryptocurrencies. And some will be commodity-backed,” he says.

Professor of Finance at Duke University Campbell Harvey sums up the whole development in simple words: Bitcoin is too volatile which is why alternatives are springing up.


Cannabis based cryptocurrency Potcoin had an impressive week in the USD markets, where its climbed around 75% amid a notable buying volume.

Price Movements throughout Last Week

As you can see the CoinGecko chart below, the POT/USD closed at 0.00117 on Feb 18th last week, after crashing from its intra-week peak level of 0.00137. The aforesaid closing point acted as a strong support to influence another rally, and price once again began to trend upwards during next days. There was a little resistance in between the Feb 20th  and 22nd trading sessions, probably due to the early exits. The market therefore slumped a little towards the prevailing support level at 0.00117.


But in last few days, Potcoin seems to have been retaining its bullish momentum and has surged to 0.00127. At press time, the price is testing the previous peak near 0.00137 — a point where a huge selling pressure awaits.

Potcoin 3.0 Announced

The 75% rally throughout  last week could be credited to a new development plan, introduced by Potcoin developer Russ Thomas recently.

“There will be a PotCoin 3.0 and it will be based on core principles, as follows: Transparency; Collaboration; Community; Decentralization; Empowerment; Support; [and] Shared Gains,” he stated on Reddit.

Thomas meanwhile revealed the development timeline to Potcoin followers that will be effective February 27th with a detailed public announcement. The event will be followed by plan authorization on March 2nd, public review by March 9th, and ultimately the response from MED on the use of Potcoin for purchasing medical marijuana by March 15th.

Potcoin team has also launched a new marketing campaign to attract more and more cryptocurrency fanatics to their community.

The number of cryptocurrencies making their way into the financial spectrum is truly hair-raising.  It’s not just that there are so many, but many of us get a real kick out of the names they’re given and what it is that they’re used for.

Some of them, such as HawaiiCoin and VikingCoin, particularly make me laugh.  Can HawaiiCoin only be used in the tropics?  Can you only use VikingCoin if your ancestors wore horned helmets and sung opera?  Probably not, but we have our fantasies.

Some of these cryptocurrencies, however, are extremely serious in their attempts to deliver specific products and environments to users.  One of them, for example, is known as Potcoin… That’s right.  A cryptocurrency specifically created for users to purchase marijuana, hemp and cannabis products.

pot cryptocurrency potcoin

It was recently reported that the overall value of Potcoin has fallen drastically when compared to the USD.  In a time when several areas are legalizing the use of pot for medical purposes and when the debate surrounding related usage continues to swell and burn, it’s a little surprising that such a drop even occurred, and yet occurred it has.  Is it possible that people no longer feel marijuana does the job?  Are they moving onto other things?  Maybe they’ve heard alcohol is more effective…

Obviously, this isn’t the likely reason.  All one has to do is look at the Bitcoin Talk forum’s page devoted to Potcoin to know that several people are still enthusiastic, but when we really get down to it, fans still appear to be in the minority.  When compared to entities like Dogecoin, Darkcoin, Potcoin doesn’t rank amongst the most well-known altcoins.  Furthermore, its usage is rather limited in terms of what one can purchase, and more is going to be needed to create a name for the currency in order to get a larger following started.

Seeing this, however, does make me wonder what cryptocurrencies we’ll see in the near future… I won’t be surprised if by next year we witness something called Dodocoin… Or maybe even Vegetablecoin.  Who knows?

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.

Screen Shot 2015-02-15 at 23.29.38

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.

Potcoin Getting high yet

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.