MassRoots Inc. (OTCMKTS: MSRT), a social media company for cannabis enthusiasts, made a huge announcement on Dec. 29, 2017: It formed a blockchain subsidiary.
And the MassRoots stock price went nuts...
It climbed from $0.67 per share to $0.98 per share yesterday (Jan. 2, 2018), a 46% gain in just one day.
Blockchain, the underlying technology of Bitcoin, is receiving more and more attention from investors. As of October 2017, there were 42 equity investment deals by corporations in blockchain companies totaling $327 million, according to CNBC.
Through its wholly owned subsidiary MassRoots Blockchain Technologies Inc., MassRoots will develop blockchain-based solutions for the cannabis industry.
But what really pushed the MSRT stock price up nearly 50% yesterday was what the blockchain can do for MassRoots' business...
The MSRT Stock Price Jumped 46% Thanks to Blockchain Plans
In the company's Dec. 29 press release, MassRoots presented five benefits of using blockchain technology in the cannabis industry.
In its presentation, MassRoots also detailed how each of these features could be used...
Seed-to-sale tracking through blockchain technology will allow cannabis companies to stay compliant with government regulations. Through tracking, cannabis companies and regulators will be able to track the times, dates, locations, and quantities of marijuana being produced.
Having all the information in one verified and safe place will make it easier for all parties involved to track cannabis.
Smart contracts are pre-approved deals that automatically execute. Through the smart contract, a cannabis company could have its inventory levels monitored.
When the smart contract sees inventory levels are low, it could automatically reorder more of a specific cannabis strain for the company, MassRoots said in its presentation.
MassRoots says buyers and sellers in the sharing economy generally have to conduct business through a third party like AirBnb and Uber.
An intermediary in the marijuana industry can be eliminated with blockchain technology, which allows peer-to-peer transactions.
MassRoots said in the press release that it's "exploring how this can be applied to producers of cannabis and the dispensaries that purchase from them."
For its shareholders, the tech company is exploring how to apply blockchain technology to proxy voting.
BREAKING: New Legislation Could Turn Tiny Pot Stocks into Millions. Click Here...
Instead of having to mail in a vote or try and attend a shareholder meeting, MSRT shareholders could eventually vote on their computers.
MassRoots said the technology could give shareholders a "greater degree of transparency and communication."
MassRoots collects data from its users, but it believes that process could be streamlined to be more efficient.
Through blockchain technology, MassRoots says it could "enable advertisers to better target consumers, reduce the risk of security breaches, and enable the development of solutions that better serve the MassRoots community."
We won't know how adding the blockchain to its business will affect its profits until it's actually implemented, but it's clear investors are excited by the possibilities.
We'll continue to provide our readers with up-to-date reports on MassRoots and other pot stocks through our free Profit Alerts service.
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