Cannabis Goes Into the Metaverse, Creating New Opportunities And Business Issues | Not Fox Schiff

Following in the footsteps of Californians, Coloradoans, Arizonans, and Bay Staters, Metaverse residents can now walk into a cannabis dispensary and purchase cannabis products. Two cannabis brands have their own Metaverse storefronts, where they sell products at real addresses in all 50 U.S. states. Higher Life CBD and Kandy Girl each acquired a property in Metaverse (at Cryptovoxels and Decentraland, respectively), where they welcome customers interested in purchasing digital items (such as NFTs and Metaverse wearables) and product actually based on cannabis.

Entering the metaverse, both mimic the global concerns faced by almost every business (real estate, employee management, and customer relations) and open up new gray areas of regulation, such as unequal state and federal laws governing advertising. , selling, selling and owning cannabis products. Higher Life CBD and Kandy Girl are designing their Metaverse storefronts as virtual dispensaries. While Kandy Girl tried to circumvent state laws banning the sale of cannabis by selling THC gummies (consisting of no more than 0.3% delta-9 THC extracted from hemp), which is legal under federal law, some cannabis products can only be shipped today. in a limited number of states. Currently, buyers looking for cannabis products in states where the sale of cannabis is not legal is limited to CBD -only purchases. However, as the tenor of state and federal laws slowly move toward legalization, many states will become markets for cannabis products – and brands that are already familiar to consumers, digital or otherwise. no, there is an advantage once such sales are allowed.

Cannabis businesses operating on Metaverse can also use their digital storefronts to streamline their customer service operations. For example, expert budtenders can advise potential customers around the world and introduce other products and lines that can meet customers ’preferences and price range, all from the convenience of themselves. houses. Brands can also collect a large amount of data about their customers and use that data in new offers targeted at customer preferences.

Metaverse could eventually serve as a good equalizer – giving smaller, local brands the ability to compete with more established brands, all thanks to the power of the internet. Higher Life CBD is an Indiana company, and Kandy Girl is owned by a Florida businessman, but in the Metaverse they can be anyone’s local dispensary.

For brands not yet in the Metaverse, now is a good time to think about expanding beyond your local footprint and gaining your place in the digital marketplace. As large corporations expand the metaverse, they seek to bring in as many new eyeballs and cost dollars as there are on the internet. Establishing a distinct Metaverse presence and opening digital doors will allow these new customers to start shopping for cannabis products online when they are ready.

However, before entering the metaverse, cannabis companies must consider the individual advertising and marketing regulations of the states in which they operate. In addition, they need to carefully consider considering specific terms of service or use of the particular metaverse they plan to operate on. sa. For example, the Sandbox terms of service prohibit users from “[p]promotes any illegal activity or promotes, promotes or aids in any illegal activity, ”and the Decentraland Terms of Service state:

“If there is a connection to your account, a decentralized autonomous body (DAO) may suspend or block your account.”

In general, while the Metaverse is a ripe target for cannabis companies to operate, market and provide customer service, they need to carefully consider the regulatory and operational environment of the particular Metaverse. where they plan to operate.

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