Are Industry Specific Cryptocurrencies Dead or Dormant?
The legalization of recreational marijuana in Colorado in 2012 coincides with the early days of Bitcoin. The marijuana industry in the United States has a difficult relationship with banking since its start. Despite marijuana being legal in many states and territories, it is still banned federally. This legal grey area causes banks to deny services to the industry.
As such, many creative methods have been developed by dispensaries and growers. Many have depended on cash and safes, but some have turned to cryptocurrencies as an alternative. Throughout the years there have been several marijuana-specific cryptocurrencies.
Marijuana Specific Altcoins
Probably the best-known marijuana-specific cryptocurrency, Potcoin is also the first. Launched in 2014, the technical aspects of Potcoin mirror Litecoin. It is a minable cryptocurrency with a max supply of 420 million Potcoins. Currently, it is trading at $0.005 USD per coin and is ranked #821 on Coinmarketcap. Potcoin is only available at Bittrex as part of a POT/BTC trading pair and has a daily volume of $216.
Potcoin might be best known for sponsoring Dennis Rodman's trips to North Korea in 2018. The former Basketball superstar was seen sporting Potcoin merchandise on his trip to meet Kim Jong-un.
Dennis Rodman arrives in Singapore for the Trump-Kim summit in a T-shirt promoting a cannabis cryptocurrency.â ian bremmer (@ianbremmer) June 11, 2018
Weâve reached peak 2018. pic.twitter.com/W6UcbF5BPj
One of the higher-profile ICO's of 2017, ParagonCoin was to be based on Ethereum's blockchain. Paragon was founded by former Miss Iowa, Jessica VerSteeg & had a celebrity endorsement marketing campaign. The Ethereum based token began facing legal issues in the United States from the SEC. The SEC declared that the Paragon ICO was essentially the sale of securities.
Paragon is still traded on Yobit & Tidex for different pairings. It is listed as #1094 on Coinmarketcap and has a daily volume of less than $1. It has been listed on Deadcoins.com since January 2019.
Similar to Potcoin in many aspects, CannabisCoin also launched in 2014 and is minable. It is currently ranked #1124 on Coinmarketcap and is only tradable on Yobit at the moment. Its trading volume isn't listed meaning it is likely zero. CannabisCoin has been listed on Deadcoins.com since March 2019.
Launched in the early days of the ICO trend, Tokes was released on the Waves blockchain in January 2017. It is trading currently at $0.06 and is traded only on Waves Exchange at the moment with $86 in 24-hour volume. It is listed #1468 on Coinmarketcap but isn't listed as dead on Deadcoins.com.
Also launched in 2014, HempCoin is also a minable cryptocurrency with its own blockchain. HempCoin had possibly the most interesting ticker of the bunch (THC). HempCoin is still traded in three different exchanges in BTC pairings including P2PB2B, Trade Satoshi & Graviex. Unfortunately, its daily trading volume across all markets is around $9. It is not listed as "dead" on deadcoins.com
Probably the most successful of the bunch, Dopecoin also launched in 2014. While it is listed at #1364 on Coinmarketcap, it seems to have the highest trading volume. It is only traded on Mercatox but has a daily volume of $3,595. It is currently trading at $0.001 and its ticker is DOPE, literally. Despite having the highest active trading volume, it has been listed on Deadcoins since 2017.
A relative newcomer, Cannation was launched in 2017. Unlike ParagonCoin, it was not part of the ICO craze & is its own coin with a minable blockchain. It is currently available only on YoBit at the price of $0.001 but has a trading volume of zero. Oddly enough, Cannation is not listed as 'dead'.
Industry Specific Cryptocurrencies & Their Future
Cryptocurrencies for specific industries has been a thing since shortly after the introduction of Bitcoin. The main industries that had coins associated with them were the adult industry and marijuana. This is primarily due to the complications that these industries face with banking.
It seems that not many of these industry specific coins have managed to survive the "crypto-winter" of 2018. It seems like nearly all of these coins, except perhaps Dopecoin have failed to gain any form of adoption.
Most of these marijuana specific coins & tokens have also proudly claimed that they are somehow furthering legalization. Other than PotCoin which have donated to multiple charities in the past, most have failed that mission too.
Businesses in the marijuana industry could be more inclined to use better known cryptocurrencies that are not industry specific.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado