The month of September has been quite eventful for the cannabis industries. With the weed junkies taking “wake me up when September ends”, it seems like they have adopted a new way to sleep the September away.
But that’s not it, the weed stocks have been wild. On September 19th, a Canadian cannabis company called Tilray (TLRY) saw a significant increase, shooting as high as 90%. The outpour came after the company announced that they are looking for pharmaceuticals that they could partner up with. There was a point when the market cap exceeded that of Tiffany American Airlines.
However, after sometimes it watered down, despite that, the market cap was still 40% larger than what it used to be. A day later, Tilray experienced another drop, even then it’s market cap was 20% bigger than it was in July.
With all the exciting highs and lows the weed industry has experienced the past few months, we can’t help but notice the conspicuous similarity between the two; cryptocurrency and the cannabis. The high volatility, swings being influenced by the news and media, rising support from the millennials, emerging mainstream adoption and regulatory uncertainty, are all alike.
Not only this but the two are undeniably new in the market and both need to meet some challenges to reach their full potential while they are in it. And the potential is what remains undeniable because it can prove to be a good trade market in the future.
However, there is another thing that ties these two industries together; high levels of fraud. According to people, the fraud in crypto space is similar to any other area. People are scamming each other with fake ICO offerings by claiming a high guaranteed return, promises that seem too good to be true, like zero failure, and goals that promise to change the world in unbelievable ways. The link between the two doesn’t come to any of us as a surprise, as a matter of fact.
The marijuana industry is extremely fraudulent too. It seems to cash out every time there’s news regarding the legalization of marijuana. There are scam artists whose purpose is to exploit such hot industries to trick excited investors. Every time the words legalization and marijuana are heard in the same sentence, the fraudsters try to exploit the opportunity and trick investors to willingly help out the weed industry.
However, not every company is trying to rip people off. So, in order to prevent that from happening, there are background checks and research has become an essential part of investing. Much similar to how you start out in the crypto-verse as well.
The mainstream adoption of weed and crypto seems to be very much alike and this all can be credited to the upcoming generation. With the old, conventional generation being replaced by the new experimental age group, their trust in extremely volatile ventures is a depiction of what this era is set out to achieve. Till then make your bets while being high.