Rarely do two emerging technologies collide in a way that bitcoin and cannabis are doing today. The seeds for both were planted several years ago and both are growing like - no pun intended - weeds today. In the case of bitcoin, it would be more fair to say a weed on steroids, as the digital currency has mushroomed about 1,000% in 2017, breaking through $11,000 for the first time ever Wednesday morning.
Companies like mobile app developer AppSwarm (OTCPK:SWRM) and SinglePoint (OTCPK:SING), a tech incubator of sorts, are moving with a purpose, saying early this month that they were teaming up to address opportunities at the convergence of the two markets. SinglePoint specializes in acquisitions of small to mid-size companies, with an emphasis on new technology.
On Wednesday, AppSwarm said that development plans have been completed with SinglePoint jointly to roll out mobile applications dedicated to solve problems in the legal pot space with bitcoin and blockchain, the digital public ledger technology that serves as the foundation for bitcoin.
Due to cannabis remaining illegal (a Schedule I drug alongside heroin) at the federal level in the U.S., companies face a plethora of banking issues, often leaving them conducting exclusively all-cash transactions because banks won't touch money associated with marijuana, even if it's legal in the state.
The plan includes marketing applications and tech under the SingleSeed subsidiary of SinglePoint, with AppSwarm providing all the requisite app development and tech support. The JV intends to develop apps and technology that solve financial problems by incorporating SinglePoint's payment technologies, create more efficient operations, allow businesses to see more clearly the market around them and modernize the consumer experience. Per the pact, revenues will be shared equally between the companies.
As investors salivate over companies looking to penetrate a cryptocurrency market that is all of a sudden worth around $350 billion and a legal cannabis market projected to reach $50 billion by 2025, they're bidding up stocks of all sizes in the spaces.
Shares of SinglePoint are continuing a multi-day run with a gain of 12.5% to 10 cents with about an hour left in Wednesday trading, while shares of SWRM have exploded for a gain of 411.1% to 4.6 cents from a close at nine/10ths of a penny on Tuesday.
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