The cannabis industry has been a sleeping giant for quite a long time. Huo Tuo, a Chinese physician, leveraged cannabis aesthetic properties between 140 and 208 CE. The Chinese surgeon often used weed powder and wine to numb patients’ pain. Strangely, China’s law prohibits using or possessing this magic plant. Some countries, however, have embraced the truth that marijuana extracts can help alleviate some health-related problems.
Consequently, the global legalisation of cannabis has become a trend to reckon with. For instance, 39 states in the US have legalised the medicinal use of marijuana. Pastime use of cannabis is legal in 18 states, and more are expected to join the bandwagon. Challenges are also springing up as the fight to decriminalise weed takes ground.
What are the Biggest Challenges for the Cannabis Industry?
Legalisation remains the top challenge in the cannabis industry. Nonetheless, the untapped market is also experiencing other common challenges with up-and-coming industries. Here are the most significant ones.
Lack of Insurance Services
The sale and use of ganja remain illegal in many places. That rules out the possibility of getting a business licence, not to mention accessing insurance services. Even with legalisation, access to insurance services is an uphill task.
That’s due to the federal regulations that schedule cannabis enterprises and related entities as high-risk businesses. Consequently, many insurance companies often avoid any dealings within the cannabis industry.
Some brands have opted to test the waters. However, the stringent rules and legal jargon have been a significant hindrance. They opted out, which exposes them to different liabilities. Little wonder that more businesses are turning to blockchain technology. The cannabis-blockchain integration allows secure transacting without revealing identities.
Hindrances in the Digital Marketing Space
Businesses use digital marketing to boost their brand awareness. For one, it’s affordable. It’s also convenient and pretty practical compared to traditional marketing strategies. Sadly, finding a footing in the world of digital marketing isn’t easy for budding businesses.
Besides website design, brand presentation is another challenge facing the cannabis industry. Considering marijuana is still frowned upon in society, even with the ongoing lobbying for legalisation, content strategy and best SEO practices are other challenges barring the unexploited market from getting the much-needed exposure.
Cash Handling and Financing Challenges
Under the federal AML (Anti-Money Laundering) laws, banking services can’t receive proceeds from legal and illegal marijuana businesses. That means cannabis businesses can’t access bank loans. They also have to grapple with the risk of handling liquid cash.
There were, however, rays of hope with the emergence of small credit unions. Even with long queues, those would have provided an escape route.
Nonetheless, the Congress annual defence spending bill removed the Safe Banking Act. That pushed the cannabis industry a step back to the denial of banking services and the associated risks like armed robberies.
Although Congress and the world in general haven’t put effort into helping with the banking challenges, all isn’t lost. The weed community can find relief in recent innovative ideas within the blockchain space.
The cannabis-blockchain integration provides an ideal platform for cannabis businesses to thrive. In other words, the community can transact online and enjoy massive benefits that are often bundled with DeFi tokens, including:
- Cash-free transactions: By opting to use DeFi tokens, the cannabis industry will effectively circumvent the need to handle cash. That’ll also settle security-related challenges.
- Access to loans: DeFi tokens are unique assets since it’s easy to back them using stable coins like US dollars. The cannabis community can use the window to access business expansion loans.
- Transparency: Blockchain platforms are pretty secure. They’re also tamper-proof, making it easy for businesses to track specific steps in the supply chain.
- Lower transaction fees: The cannabis industry is classified as a high-risk sector. Businesses can use DeFi tokens during their everyday transactions to avoid that. So, they’ll often pay higher fees if allowed to transact in traditional banks.
What is a REEFER Token?
A REEFER token is what the cannabis industry has been lacking. Its primary goal is to link the metaverse, crypto, NFTs, gaming, and cannabis. The revolution is expected to alter interactions between legal weed dispensaries, smoke and vape shops, cannabis restaurants, lounges, and gamers.
The REEFER token is the first of its kind among the new kids in the blockchain and cannabis space. That notwithstanding, it’s a reliable payment platform specifically created for the cannabis industry. Already, uptake of the token is taking ground in Florida.
Since this is a DeFi platform, third parties like government bodies can’t access user information. So, identity is often protected. Furthermore, money is kept in digital wallets that offer quick, safe, secure settlements. Buying and selling of products are via REEFER token POS.
Uniquely, the REEFER token comprises a reward system. To qualify, you’ve got to be a loyal customer and refer friends and relatives. Once you are eligible, you’re entitled to free products and massive discounts at your favourite shop. Meanwhile, the outlet enjoys increased brand awareness, a growing customer base, and higher sales. It’s a win-win situation on the REEFER DeFi platform.
How Does REEFER Solve the Challenges in the Cannabis Industry?
REEFER tokens were created to help align the cannabis stakeholders – growers, producers, manufacturers, refiners, retailers, and dispensaries. Furthermore, the platform will end the age-old friction between marijuana and CBD.
REEFER has developed a mechanism that will ensure smooth blockchain and cannabis integration to accomplish that. The platform features metaverse, crypto, NFTs, gaming, and cannabis. Consequently, REEFER is expected to deliver higher levels of value to the cannabis community.
For instance, users can make quick crypto payments across the platform. That’s excellent news for the cannabis industry. After all, legislative laws have made it difficult for ganja businesses to access banking services. The same feature opens a window for cannabis businesses to access loans.
Unlike traditional banking, REEFER is a decentralised platform. So, third parties, including government bodies, can’t access user details. Online safety of users’ data is assured. However, that doesn’t mean REEFER supports the violation of cannabis laws and regulations. Instead, it’s looking to solve various challenges in the cannabis industry.
Though quite restrictive, FinCEN guidelines provide a channel for cannabis businesses to access banking services. However, the related costs are pretty steep. That’s due to recommended tight surveillance required to comply with AML laws.
It’s easy for established MSOs (multistate operators) to afford the exorbitant costs. However, that’s a huge barrier for small enterprises. REEFER has helped bridge the gap through blockchain technology by charging relatively low transaction fees. Consequently, even female cannabis entrepreneurs and minority-owned businesses are adequately covered.
The inclusion of NFT and gaming opportunities across the platform means added value for consumers and producers. Also known as weed wars, the cannabis community can earn legally or illegally through battling law enforcement threats and the illegal marijuana trade.
- Trap houses
- Grow houses
- Cannabis farms
- Legal cannabis dispensaries
REEFER Token Signs Exclusive Agreement with Cannabis AI Pioneer VisiCann To Be Exclusive Seed to Sale NFT Partner
REEFER Token has also recently signed an exclusive partnership agreement with VisiCann Technologies, a pioneer in artificial intelligence (AI) algorithm technology for post-harvest cannabis & hemp. VisiCann will be REEFER Token’s exclusive partner for seed to sale NFTs that will launch with growers and brands in the near future. VisiCann’s ground breaking technology will provide AI backed technology ensuring accuracy and authenticity documenting exact cannabis seed and strain types.
REEFER Token founding team commented, “The REEFER Token team is very excited to enter into an exclusive partnership with VisiCann. They are a great partner for us to really solidify REEFER Token as a leader in seed to sale technology. Growers and brands will have access to the best AI technology with our NFT’s incorporating VisiCann technology. This partnership with VisiCann further establishes REEFER Token’s place in the cannabis industry and brings us further to our goal to be the ultimate crypto cannabis ecosystem for all stakeholders in the sector. It’s very fitting that today is St Patrick’s Day; we celebrate the Green growth of REEFER Token with some fine green bud that can be verified by VisiCann technology. We hope all of our members in the REEFER Token community have a GREEN day!”
Eli Duffy, CEO of VisiCann commented, “I am happy to partner with REEFER Token. I have been very impressed with their team and growth over the past few weeks since launch. Their concept is revolutionary for the cannabis space. VisiCann has been at the forefront of AI technology for hemp and cannabis industries. Partnering with REEFER Token expands our reach into the crypto industry and the cannabis leader in the space. Excited for the future to come!” Eli Duffy has had a successful track record in the tech space. His companies have won technology awards from prestigious universities, including VisiCann, which has a working relationship with many of Israel’s top research institutions. VisiCann is based out of Tel Aviv-Yafo.
REEFER Token’s First Virtual THC Dispensary
REEFER Token last week struck a deal with Kandy Girl and its virtual THC dispensary in Decentraland that REEFER Token holders receive a 50% discount on any products purchased at either location using the discount code REEFERARMY. Kandy Girl joins the American Cannabis Society in Madison, WI, Collins Vape and Tobacco, and its 4 other shops in the Miami-Dade area accepting REEFER Token. Discussions are currently underway with a number of other dispensaries, vape shops, and other outlets to accept REEFER Token.
How Does the REEFER Ecosystem Work?
According to research, cannabis has been proven to be an effective solution to many health problems. Although the fantastic plant is an excellent option for conventional drugs, uptake of these truths is slow across the globe.
Activists continue to fight for the legalisation of ganja. The battle is bearing fruit as more countries are legalising medicinal CBD. Recreational use remains illegal in many parts of the world.
Legalisation hasn’t dealt with some challenges in the cannabis industry. Businesses are still struggling to access banking services. Without access to banks, the multi-million cannabis industry is grappling with handling cash and a lack of financing from traditional banking businesses.
However, innovation has helped to integrate cannabis and blockchain technology. That has helped deal with the challenge of accessing banking services. Put differently, the cannabis community can rely on blockchain to buy, sell, and even access business expansion loans across DeFi platforms.
Furthermore, some new entrants like the REEFER tokens provide additional benefits. Aside from accessing online banking services, loyal customers enjoy rewards in the form of discounts and free products from approved outlets.
More value comes with adopting the metaverse, NFTs, and gaming into the REEFER ecosystem. That said, users are free to invest and earn big within the REEFER platform.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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