The past few months have seen a turn in the trend of the share price of MassRoots Inc (OTCMKKTS:MSRT).
The company which had suffered a bear run over the whole of 2017 with their share price falling from just shy of $1.25 to below $.25 is currently enjoying a comeback. During the period between mid-November and the end of December, their share price rose to $.98, a near four-time increase.
This price action can be seen in the chart below:
This surge is attributable to two factors: cannabis and blockchain. Therefore, over the course of this piece, we will assess the company as well as these factors as we try to test the feasibility of their decision to venture into these spaces while having a feel of the expected payoffs.
MSRT: A Brief Overview
Let us first have a brief overview of MSRT.
MSRT was founded back in 2013. Its headquarters are in Denver, Colorado. They pride themselves on being one of the leading technology platforms for the regulated cannabis industry. This is through their over one million registered users.
They provide a platform for the education of their clients as well as other people on cannabis purchasing decisions through community reviews of the same. Furthermore, they possess a compliance and point-of-sale system dubbed Odava which enables cannabis-related businesses to streamline their retail operations and compliance reporting to state regulators.
The company over time has grown significantly and positioned itself as a strong player within the industry. As such, when they made the announcements on their strategy late last month, the market was all ears.
During our last review of the company, the question of whether they would survive the then troubles that had been brought upon them by management lingered. This was courtesy of unauthorized transactions that had led to the company losing about $250,000.
By then, the recommendation of a change in management was given from nearly all quarters and by the look of it, MSRT headed to this advice.
In a move meant to calm the worries of shareholders and stakeholders alike, the company recently appointed their founder, Isaac Dietrich as their new CEO and a new member of the board. Through this, the company is expected to enact their recovery plan and ensure that they begin and keep growing as they forge into the future. Moreover, with their founder bringing new ideas to the table, their strategy was expected to change, and it didn’t take long for this to happen.
Growth in California
As earlier stated, the company has a large social media base, one which they harness to ensure constant revenues. Currently, they have realized that they have over 5 million social media followers on the different platforms.
With California having legalized marijuana, the marketplace just got bigger. With expected revenues rising to over $6.5 billion in 2018, many players are currently trying to find a way to ensure that they benefit from such high figures.
MSRT has found a way to harness their huge following.
The company has launched a campaign, one which rewards users and businesses for referring people to the MassRoots platform. Through this campaign, the company has the vision of getting as many people registered on their platform thus leverage on their preferences to gain revenues through targeted advertisements by businesses.
With more people learning about the platform, MSRT expects to keep growing both their revenue position as well as their information base, one which will serve as a source of revenue for them if properly harnessed going forward.
Towards the end of December, MassRoots Inc set up MassRoots Blockchain Technologies, Inc. This is their wholly-owned subsidiary that is dedicated to developing blockchain-based solutions for the cannabis industry.
With the cannabis industry having suffered during past periods courtesy of their inability to bank their money or receive some of the financial services other businesses receive, blockchain has come to serve the industry in a major way. The service not only increases transparency but also ensures that the transaction costs are reduced and that integration within the industry can be achieved.
According to their CEO, Isaac Dietrich, the company expects that the blockchain system will “…ensure that the industry operates more efficiently and with a higher degree of accountability and transparency…”
Moreover, any player who has tapped into this industry has been a beneficiary of the ‘cryptocurrency blaze’ that lights up any player that comes into contact with it through ensuring a much higher valuation in periods after they venture into this space.
Given the above, MSRT has been the beneficiary of this as has been exemplified by their valuation. The value addition derived from the blockchain system is significant and its benefits unparalleled. This has driven their share price to the heights it has reached with greater heights expected to be reached going into the future.
MSRT has ventured into the two spaces that are providing the highest returns in the market. Through this, we expect that they will benefit simply by being within these spaces in addition to the actual value addition they are expected to bring to the market. As such, we are bullish about the future share price of MSRT.
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Disclosure: We have no position in MSRT and have not been compensated for this article. We have been previously compensated ten thousand USD by a non-affiliated third party, sunrise media, LLC for a 2-day awareness program regarding MSRT. Prior to this, we were compensated twenty thousand USD for a two-day awareness campaign, which has expired.
Image courtesy of Jurassic Blueberries via Flickr