culture | MassRoots v NASDAQ
Unfortunately, not everyone is in MassRoots' corner. The Denver-based app got dealt a pretty shitty hand on Monday when NASDAQ announced that they would not be able to list their stocks on the exchange.
Although MassRoots is made for those 21 and older in recreational states (or med patients in medical states) and does not actually sell marijuana, NASDAQ feared it encouraged the sale and distribution of narcotics, which is still very much federally illegal.
Though MassRoots certainly wouldn't be the first cannacompany to be publicly traded on the NASDAQ (there are a handful of biotech companies working with cannabis that are NASDAQ listed), it would be the first of its kind, with such heavy ties to patients, consumption and recreational use. And unfortunately, NASDAQ isn't totally wrong--as it stands now, MassRoots is an awesome network for patients, but it's not heavily regulated. This is great for people like me, who want to post pictures of their bud without fear of removal or legal action, but it also creates a community where it's relatively easy to buy, sell or trade your meds, regardless of the legality. In my region, there are a handful of patients, but there are also a lot of people selling weed. In our state and in pretty much every other, that's a huge no-no.
However, a lot of MassRoots' shortcomings could easily be fixed, especially with the revenue increase that could come from being publicly traded. MassRoots has a really great concept, but as I mentioned there are some small improvements to be made. Things like better spam detection and patient verification could ensure that the app is used as it was designed (i.e, NOT to sell drugs) and to get greater reach. MassRoots advertises itself as the Favebook for stoners, and I think that with the right funding and support it could be just as profitable and influential.
Unfortunately, it takes money to make money, and with all of the financial regulations cockblocking our industry it can be incredibly difficult to bring a change. Though this specific circumstance deals with NASDAQ and stock trading, it just highlights all of the other challenges we are up against. Dispensaries and cannabis related businesses are still not eligible for bank accounts because cannabis is still federally illegal, which means small cannabusiness is almost unheard of. Dispensary staff and patients alike have to carry cash, sometimes huge amounts, which can be stressful and dangerous. Without the paper trail that comes from card transactions and bank deposits, cannabusinesses are forced to do all their accounting by hand. There are a ton of really great organizations like Women Grow and The ArcView Group, which can help some businesses with their funding and financial needs, but there's still a huge gap waiting to be filled. Decisions like these not only hurt the big players of the industry, they affect us "little guys" who are all but helpless without the big banks behind us.
MassRoots does plan to appeal this decision, and depending on what happens could appeal all the way to the Securities Exchange Commission (SEC). This could potentially be a groundbreaking decision, so although it's a little extra work for our MassFam, I am optimistic about their battle and excited for the outcome. We're writing history, folks...lets make our grandkids proud!
