GreenMed counters cash-only cannabis industry with cryptocurrency

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It’s no secret that the United States loves getting high. This is readily apparent in the explosive growth of the cannabis industry since California first legalized medicinal marijuana in 1995. According to Forbes, medical cannabis sales are projected to continue their rapid growth, from current levels at $4.7 billion, to $13.3 billion by 2020. In the past two decades, the cannabis industry – growing as well as legally selling for recreational or medicinal use – has exploded.

At the time of publication, cannabis is legal in 28 states for medicinal use, and completely legalized for recreational use in 8 states. While this is fantastic for cannabis consumers and the industry as a whole, there’s a major snag that hinders wider adoption of cannabis as goods: the industry is strictly regulated. One of the most contentious aspects of this regulation is the requirement that all cannabis transactions are cash-only.


This is problematic for a number of reasons. On the consumer end, this means that anyone visiting a dispensary must forego the convenience of using a debit card, and either visit an ATM beforehand or use one on the dispensary’s premises, often invoking fees. On the merchant’s end, relying on cash-only transactions is both costly and fraught with pitfalls. Security and storage costs for warehousing cash are part of the dispensary’s expenses, which are passed along to the user. It also makes the dispensaries a prime target for robberies.

This also means that all intradispensary transactions are cash based. Therefore, dispensary owners must pay all their employees as well as their taxes in cash. This is a needlessly cumbersome way of operating and is both error prone and a security liability.

Token it up

GreenMed hopes to rectify this issue by the creation of the GreenMed token and app. The app, slated for release on iOS and Android, allows users to create an account and link it to an existing bank or debit/credit. The app then uses the phone’s location to suggest nearby dispensaries. Users can select a dispensary, add desired items to their shopping cart, and select in-house pickup or delivery (where applicable.) The app then covers payment via a process outlined below.

GreenMed also intends to create a debit card that users can opt into, which will allow users to withdraw funds directly from any ATM within the Visa network.

How GreenMed works, in detail:


When a user makes a purchase of a cannabis item, the app treats it as a token sale, converting the user’s USD into their GreenMed token. The app then transfers these tokens to the merchant and converts the token back to USD on their end. GreenMed intends to use their share of withheld tokens to provide liquidity so that USD value on both user and merchant end is congruent.

How GreenMed compares to similar products

GreenMed isn’t the only intersection between cannabis and cryptocurrency – in fact, cannabis related coins are increasingly popular. With this in mind, GreenMed has a healthy amount of competitive contenders as well as auxiliary tokens. That said, we believe wholeheartedly in the concept and team behind GreenMed, and think they’re an excellent ICO to participate in – definitely the strongest cannabis related cryptocurrency.

The most well known cannabis coin that is often compared to GreenMed is Paragon. Paragon’s aim is to incorporate the existing cannabis industry onto the Ethereum blockchain, creating full transparency through the entire production process, from growing to sales. This allows for many aspects of the process of both growing and purchasing/selling cannabis to be put on a distributed, decentralized ledger. However, one aspect of the cannabis industry that Paragon doesn’t intend to alter is the cash-only requirement of purchasing cannabis. As such, while Paragon is a promising project, it is our opinion at Cryptocurrency Investing News that the two projects are auxiliary and not direct competitors.

Some have criticized the Paragon project, with Picolo Research ultimately advising that investing in Paragon is a “significant risk to investors.” We are fond of the Paragon project but would wholeheartedly suggest investing in GreenMed over Paragon.

Other competitive cannabis related tokens of note are CannabisCoin and PotCoin, which are both similar ideas. However, they pale in comparison to GreenMed, since they require the use of an intermediary exchange – for both the consumer and the merchant – to convert USD and their respective token. Handling this conversion in-app so that endusers only have to deal with USD streamlines the process immensely. As such, we see GreenMed facing far wider adoption than other similar cannabis related cryptocurrencies.

A Challenger Approaches

Some think that GreenMed faces a far more significant threat. An anonymous source close to the cannabis growing industry has stated in personal correspondence that several major cannabis growers are in the brainstorming process for their own cannabis-related cryptocurrency. The source – who wished to remain anonymous, but is a beloved and trusted figure in our Facebook groups as well as the cryptocurrency and cannabis space at large – purportedly has a similar aim to GreenMed: a coin which can be used solely for the purchase of cannabis. These major players hope to use their considerable influence, clout, and capital to force vendors to adopt this coin as the primary contender to cash payments for cannabis. Source states that this project is far from being launched at time of publication, but believes that it should knock every contending token to the wayside.

While this may end up causing trouble for GreenMed down the line, given that this is (at publication) hearsay from an anonymous individual, we stand by our endorsement of GreenMed as the most solid cannabis related cryptocurrency investment current on offer.

How to participate in GreenMed tokensale

Investors interested in participating in the GreenMed crowdsale can navigate over to GreenMed’s registration or login page, and sign up to participate. The crowdsale began on October 2nd, and runs until October 30th, 2017 (PST.)

Current exchange value is $.20 per GRMD token.  As such, investors contributing in their crowdsale will receive:
1486.5 GRMD for each ETH
21925 GRMD for each BTC

GreenMed is also utilizing a referral program, in which both the referrer and the referred receive a 10% token bonus: someone who signed up using your email referral link will receive an additional 10% of their contribution’s value in tokens, as will you.

GreenMed is issuing 100,000,000 tokens at first. Thirty percent of those tokens are retained for the team. Sixty-nine percent will be allocated for the presale and crowdsale. The final one percent of tokens will be saved for their bounty program referrenced above. Any tokens unsold by end of crowdsale will be burned, increasing the exchange value.

The crowdsale ends on October 30th, and the GreenMed token will hit exchanges in November.
GreenMed intends to release their app during Q1 of 2018, with credit card integration slated for Q2.

 

Watch the official GreenMed introductory video here.
Read the whitepaper here.

DISCLAIMER:
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

In the interest of full transparency, Cryptocurrency Investing is happy to disclose that some or all members of the team were compensated for the creation of this content. However, we ensure our readers that we only endorse projects and technologies that we fully support and stand behind.

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