Düber Technologies is launching a digital token sale to grow some green.
The budding software-as-a-service provider for the cannabis industry has announced a pre-sale for its initial coin offering (ICO) will open October 11. A crowdsale token launch will follow on November 1 and close one month later.
Dubbed düber token (DBR), the Ethereum-based cryptocurrency is part of düber’s push to incentivize the industry and improve information exchange in the cannabis community, including consumers, retailers, labs, processors and growers. The company is using a simple agreement for future tokens (SAFT) framework for the ICO which accredits token buyers as investors.
The Seattle-based company is aiming to raise 350,000 ETH—currently valued at nearly $103 million USD. If they’re successful, that would put the düber token at the the 61st most valuable token, according to the latest values on CoinMarketCap.
The ICO will ramp up düber’s efforts to grow the global cannabis network. The cannatech SaaS company currently supports cannabis retailers through digital software solutions including online ordering, supply chain management, retail automation and advertising.
Düber outlined the company’s foray into blockchain through the crowdsale of DBRs in a white paper published online today. The company said its soon-to-be launched token will reward consumers and help both small and medium-sized marijuana-based businesses succeed.
“At düber, we believe that we have the unique opportunity to transform the cannabis industry through incentivizing the creation and sharing of information, which benefits all patients, consumers and businesses,” said Glenn Ballman, founder of düber in a release.
Düber listed six ways those within the cannabis community can earn tokens. DBRs will be rewarded to those who contribute cannabis product information and photos, submit product reviews, earn tokens through loyalty programs, refer new customers, interact with advertising, and contribute content.
As a result of this increased information exchange, Düber said the blockchain technology will “measure and allocate growth in economic surplus throughout the supply chain.”
DBRs can be used within the network to pay for goods (cannabis is only one example) and services provided by licensed cannabis businesses like home delivery. The tokens can also be put towards utility bills and lab bills that cannabis processors and producers are responsible for.
“The increased value will be distributed across the community and thus create a level playing field for small and medium local suppliers and retailers, while neutralizing the size advantage of brick-and-mortar and e-commerce giants outside the network,” the white paper reads.
Two weeks ago, düber secured $50 million in capital in an agreement with Vacone Real Estate to fund 15 new legal distribution centres in Washington, Oregon, California, Nevada and Arizona.
The new deal will expand düber’s exisitng digital operations to include 400,000 square feet of physical distribution space. The centres form the basis of düber’s unified distribution technology platform, crucial to the company’s mission to help small cannabis companies compete with large corporations.
“This expansion will allow us to serve our distribution and courier partners while continuing to expand our integrated, omnichannel, real-time platform to partners and consumers in key markets in the cannabis industry,” Ballman said in a release.
Ballman launched düber in 2016 after seeing an opportunity to transform the cannabis business. A fast growing legal industry, 37 U.S. states and Washington, D.C. have passed medical or recreational cannabis laws. Canada is also on track to legalize recreational cannabis by July 2018.
In the next couple months, düber plans to launch a point of sale system and an advertising platform. In the first half of 2018 alone, they are aiming to release two new platforms: one for loyalty and messaging, the other for home delivery and distribution.
Ballman found early success in the dot-com boom, launching a company that would become Onvia in Vancouver two decades ago. He moved Onvia to Seattle after failing to secure venture capital in Canada and ballooned the business to a nearly $6 billion-dollar valuation. After it plummeted to $200 million, Ballman left his internet business in the early 2000s. Onvia was sold today for $90 million.