A document passed from industry giant IBM to the Canadian government this week caused ripples throughout the market for certain herbal based altcoins. As Canada prepares for the legalization of marijuana next year it is seeking solutions for the production and distribution of all of that herb. Official statements claim that there are plans to make non-medical cannabis legal by July 2018.
A solid suggestion came from tech leaders IBM who recommended using the blockchain to facilitate the embryonic marijuana market. The company is consulting with British Columbia as it gears up for the production and distribution of cannabis. Blockchain was recommended to ensure customer safety and reliable regulatory oversite from what it called ‘seed to sale’. In a PDF document loaded onto the government’s website IBM emphasized the benefits of the technology such as its decentralized nature, increased transparency and the impossibility of spoofing transactions.
The blockchain would aid the government in taking control of product sourcing and sales, a major goal being the elimination of the black market. A farm-to-table surveillance mechanism for pot in British Columbia was proposed with every transaction or action within the system being tracked and data-mined. According to the document the blockchain could provide “trends of consumption through data analytics” and “create predictive insights”.
As the news made it to social media a surge in price of cannabis based altcoins ensued. In what traders called a ‘pump and dump’ the Mary Jo based crypto Potcoin jumped over 720% in a matter of minutes. Potcoin has been flagging in a sideways channel trading at between $0.06 and $0.08 for two months after a high of $0.17 back in June. This spike caused by IBM’s support of blockchain technology in Canada’s budding cannabis industry sent Potcoin briefly up to $0.66.
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Marijuana markets soon rebounded back though as is often the case with smaller altcoins and news flashes. It is currently trading at around $0.16 which is still 50% up on previous levels. The hope is that there will be mass adoption of marijuana based crypto currencies used to buy and sell the product when the new legislation comes into place next year in Canada and more states in the US legalize it.
There are a few cannabis based altcoins such as Hempcoin (THC), Cannabiscoin (CANN), and Cannacoin (CCN), they all experienced similar price spikes. Potcoin seems to be the most popular one and prices are still low enough for investors to secure a good stash – the future could be bright for this herbal crypto.