Cannabis Science has announced that it will begin pre-launch sales of its token in January. The company believes it has a compelling solution for the marijuana industry, envisaging an asset-backed blockchain currency with a range of applications.
The company is the latest in a growing list of cannabis-related blockchain projects. Earlier this year Paragon, Weed Currency, Tokes Platform, PotCoin and PerksCoin all held, or announced, token sales for projects promising to combine blockchain technology with a cannabis industry emerging on the back of growing legalisation.
US Presents “Unique Challenge”
The cannabis industry in the US represents a unique challenge. While trading in cannabis has been legalised in a number of states, including California, it is still illegal under federal law.
This makes it difficult for any business involved in the industry to open a bank account, raising a range of practical problems as a result.
With a blockchain-based solution, these “Spliff ICOs” believe they are able to present a work-around. On the other hand, some commentators have pointed out that Bitcoin alone largely solves those kinds of problems.
Shares in Cannabis Science, which already trades on the OTC market, jumped 12 percent on the news of the ICO which has still to publish its white-paper.
The price jump mirrors the market reaction experienced by several companies including Overstock and Long Island Iced Tea whose share prices have all benefited from a recent blockchain re-brand.