Commodities in commerce are any goods that are interchangeable with other goods of the same type. Commodities vary in quality from producer to producer. They usually are goods that are used to make other products. The first commodity exchange was the Chicago Board of Trade (CBOT) — since then, many other commodity exchanges have formed around the country, accompanied by various attempts of government to regulate their sale and trade. In 2012, when marijuana was legalized in Colorado and Washington, a new type of commodity exchange germinated in the soon-to-be fertile ground of legal cannabis.
First planting roots in Colorado, The Cannabis Commodity Xchange (CCX) is now rooting a clone in Washington State. CCX is an online trading site for marijuana based goods. The online trading site allows users to register for free and see trades. However, without registering as a legitimate state licensed business, users can only spectate . Once a user applies and is approved, they can begin using the color coded app to securely buy, sell, trade and collect data. The app allows users to list and browse product requests, interact and negotiate with potential buyers, then easily buy or sell their products. This is all accomplished on a simple, single-screen app.
The Cannabis Commodity Xchange was founded by a diverse group of ganjaprenuers with backgrounds in business, law and web development. Maz Momeni, co-founder of CCX, says,
“We really saw the need for businesses to be able to trade easier. With all the changing regulations, spotty inventory and other hiccups in the legal cannabis market, we founded CCX to give users more of a professional business to business experience. By bringing together our diverse team we can really approach the cannabis market from all angles. We have a MBA working on the business and trading side.”
“I used to be an attorney which prepared me for the networking skills and understanding needed for starting a new business in such a regulation-heavy industry.” Momeni said. “Topping it off, our web developer has really created a nice and easy to use app.” Momeni holds that their knowledge of cannabis and how cannabis works is what really makes them stand out from the competition.
Momeni and team are looking to the future in the cannabis market. They plan on expanding to states that are coming on board to marijuana legality. For now, they are focusing on Colorado and Washington. They hope to be able to one day trade cannabis products on a national market. Unfortunately, Maz points out, “The recreational market is not quite ready for that step due to no uniformity in regulations.” By changing marijuana from a Schedule 1 narcotic, the federal government can lead the way to regulating marijuana as a commodity.
Photo Credit: Peter Hellberg