Cannabis Coin (CANN) has skyrocketed by over 1000% this month as 1 CANN is set to become “officially” redeemable for 1 gram of cannabis, starting tomorrow at the “Yes We CANN” event at Phoenix’s Herbal Wellness Center.
Prior to October 1, the coin was trading at 1150 satoshi. It now trades at over 14,000 ($0.053) and earlier hit 16,000.
In the US, Cannabis reportedly costs in the range of $29-$71 per 1/8 ounce, depending on the use (recreational vs medical) and the method of sale (dispensary vs street). This translates to about $8-$20 per gram, which theoretically makes the coin a huge bargain even at current prices. There will be limits on the amount that can be redeemed per day.
The coin has ascended from relative obscurity among the multitude of altcoins to now rank 12th in market cap, now worth $5.1 million, placing it ahead of what had been some relatively prominent coins.
According to its website, “CannabisCoin is the payment solution for Marijuana dispensaries, retailers and merchants.” It seeks to remedy the challenges faced by medical marijuana dispensaries in 20 states (and those for recreational use in Colorado and Washington) in securing banking or credit card services. Though local laws may permit their activities, even state banks are wary of engaging in what can be considered risky behavior. Most transactions or therefore performed in cash or money orders.
CANN/BTC, Oct 19. (Source: Bittrex)
The coin thus shares a similar vision to PotCoin or MaryJaneCoin, which also seek to leverage cryptocurrency to further the marketability of marijuana. Previously, both have also experienced gains on the scale of 1000% within very short periods.
The coin is mostly traded on Bittrex and Cryptsy, with a total 24h trading volume currently equivalent to $118,000 across all exchanges. Volumes were considerably higher 4 days ago during the height of the excitement.