November 27, 2017 (Investorideas.com Newswire) On the early morning of June 19, 2016, Travis Mason, a guard at a marijuana dispensary in Aurora, Colorado, was fatally shot in the head by two armed robbers. These men weren’t looking for pot; they were searching for what they must have suspected were substantial amounts of cash kept at the dispensary. This was born out by the heist of $100,000 in cash from a dispensary in Seattle a year earlier. “This incredibly sad situation underscores the public safety risk faced by our industry due to the fact that we don’t have access to banking,” Michael Elliott, executive director of the Marijuana Industry Group, told the Aurora Sentinel.
He is correct. In Canada and especially in the US, very few banks will have anything to do with cash generated from the sale of marijuana or cannabis-based products because they are illegal at the federal level. This has caused huge and potentially fatal headaches for pot stores and dispensaries as they attempt to conduct an all-cash business – from sales to payroll to taxes.
Though there is hope on the horizon for Canadian businesses as a bill for national legalization is expected to be tabled soon, for US businesses the nightmare is only beginning as more and more states vote to legalize pot for recreational use yet it remains federally illegal.
While security companies and business owners work to make the industry more secure, the only circumstances that will truly change the plight of these operations would be if and when they are afforded the same financial protections as other businesses. This could be decades away if business owners are forced to wait for their national banking system to provide these protections. Fortunately, Cryptocurrency is coming to the rescue.
What Is CannaSOS?
In 2014, CannaSOS launched as an amalgamation of a social network, advertising platform and marijuana database with plans to eventually incorporate a complete Cryptocurrency transaction platform known as the PerksCoin Transaction Platform, or PTP. This platform will enable cannabis consumers, and the vendors, manufacturers and advertisers of cannabis-related products, to exchange secure currency for products provided or services rendered. In short, it stands to be the vehicle by which the cannabis community can finally enjoy financial freedom and security worldwide. Today, the CannaSOS site boasts over 315,000 registered members and 970 business pages.
The PerksCoin Transaction Platform
PTP is a Cryptocurrency platform set to run on decentralized blockchain technology. Once launched, the platform will exist as an autonomous entity regulated by the participants in the blockchain. The platform will incorporate a cryptocurrency wallet and be free to use by the public.
Features of the platform include:
- Operate on an autonomous utility token, the PerksCoin Token (PCT);
- Generate and withdraw PerksCoin Tokens (PCT) from circulation for token liquidity;
- Guarantee security, transparency, and safety of all PCT-based transactions;
- Act as a mediator/arbitrator between Seller and Buyer;
- Support peer-to-peer PCT token sale, eliminating middleman and associated costs;
- Offer Secure Sale feature to protect buyers from unverified sellers, minimizing fraudulent activity in the marketplace;
The secure sale features will not be necessary for small, over-the-counter transactions but will undoubtedly be coveted by businesses for B2B operations for large sums pertaining to advertising, inventory and supply purchases. Both consumers and businesses will likely elect to utilize the Secure Sale system for their online transactions.
The rendering party will be responsible for paying a service fee in PCT tokens. The fee amount will be determined based on a vote by blockchain participants. PCT tokens collected as a payment for Secure Sale service will be removed from the blockchain via burning.
According to California treasurer John Chiang, the US cannabis industry is expected to blow passed the $7 billion mark in 2018. Meanwhile, an estimated 70% of these businesses do not have bank accounts. In his words, “this is trouble waiting to happen.”
Just ask the many business owners trying to do the right thing in an industry in which the financial component resembles the gold rush in the wild west. “We’re close to a crisis when it comes to how to manage the situation in legal fashion,” said Kathleen Van Osten, a consultant who represents a “regulatory-minded” San Jose cannabis manufacturer. “They’re running out of space to store cash.”
Besides the personal risks to business owners and employees, dealing with cash also cuts down on the profitability of canna-related businesses.
Khurshid Khoja, an attorney for the California Cannabis Industry Association, said one of his clients has 60 employees and an accounting team of four, plus a controller – “nearly unheard of” for a company that size. The firm pays $325,000 a year in salaries to people who deal only with cash handling, and estimates it loses $1 million a year to the various burdens cash imposes.
Meanwhile, consumers of cannabis-related products are inconvenienced by the fact that very few businesses can allow them to use debit or credit cards. Those who do typically need to charge a fee due to the expense on their end.
There can be no doubt that the entire cannabis industry is yearning for a financial transaction platform that addresses these concerns, and PerksCoin tokens and the PTP created by CannaSOS are perfectly positioned to do just that.
PerksCoin will also be used as a loyalty program among retailers, wholesalers, and other businesses in not just the cannabis industry. One example is Pundi X – a CannaSOS partner. CannaSOS universal API for PerksCoin (to be created around April, 2018) will be implemented into Pundi X’s POS platform; which currently operates in 600~ locations in South East Asia, and is planning on adding another 200,000 locations by 2020. Pundi X’s POS platform is currently implemented in restaurants and Café’s, convenience stores and other shops.
The CannaSOS ICO
CannaSOS enjoyed a spectacular pre-ICO with upwards of 9 million PCT tokens being reserved up by over 400 early adopters. With the public presale for the ICO starting on November 25, savvy cryptocurrency watchers will have the opportunity to jump onboard what could be a game-changer for the cannabis industry at a substantial discount.
“The last month or so has been a whirlwind as we’ve seen an intense outpouring of interest both on the investment and implementation side,” remarked CannaSOS founder and CEO Oleg Cheine. “Clearly, both blockchain experts, as well as cannabis-related experts and organizations, recognize the potential of our transaction platform for the industry.”
Learn more about CannaSOS and claim a slot in the ICO public presale at: cannasos.com/crowdsale-ico
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