DOGP, a publicly traded company with fingers in cannabis telemedicine and blockchain innovation, just doubled down on Dogecoin Cash (DOG). They bought 2 billion DOG tokens directly from Tipestry. In exchange, they released a quarter of a million shares of preferred stock to MEME COINS INC’s high-octane, meme-laden start-up. What's the deal, and should you care?

Cannabis, Crypto, and Cartoon Dogs?

Even if it was half-baked, it’s safe to say the Venn diagram of cannabis, crypto, and meme coins likely has a pretty small overlap. DOGP's core business is, ostensibly, cannabis. They're involved in telemedicine and product development. Well, what’s with this new obsession with a meme coin?

Dogecoin Cash (DOG) – A fork of Dogecoin, Dogecoin cash looks to provide quicker transaction time and lower costs. As a meme coin, its value is essentially based on the internet’s booms and busts and the social media influencers pushing its narrative. This is the place where the “surprising link” occurs. The landscape of early cannabis legalization was built by grassroots movements, passionate activism, and energetic online environments. This wave of change was propelled by a potent culture of counter-culture. Are meme coins just the digital version of that popular uprising, a decentralized protest against legacy finance?

The acquisition itself is structured cleverly. No dilution to DOGP shareholders – a great sign. Is 250,000 shares of preferred stock a reasonable purchase price for 2 billion DOG tokens? That is all based on DOG being easily convertible to ETH and DOG having value in the future. The question is: Can meme coins hold long-term value?

Financial Folly or Future Fortune?

Meme coins are notoriously volatile. A single supportive tweet from Elon Musk can send them to the moon, and a single bad news cycle can level them. Investing in meme coins is inherently risky.

DOGP, in their press release, refers to this DOG token accumulation as a “strategic digital asset position.” I call it a gamble. A smart strategy, sure— but still a gamble. Now picture Coca-Cola going the other way. Imagine if instead they had chosen to invest the vast majority of their assets in Beanie Babies. You'd scratch your head, right?

There's a potential upside. If DOGP can successfully integrate DOG into its ecosystem, they could tap into a massive community of meme coin enthusiasts. Think about it: DOGP could offer discounts on its cannabis products to DOG holders or create a decentralized loyalty program powered by DOG tokens. This has the potential to greatly spur adoption and thereby increase value for DOG.

The risks are substantial.

  • Volatility: Meme coins are prone to wild price swings.
  • Regulation: The regulatory landscape for crypto is still evolving.
  • Competition: The meme coin market is crowded.
  • Reputation: Being heavily associated with a meme coin could tarnish DOGP's brand.

Will DOGP Unleash DeFi Potential?

The press release mentions DOGP's exploration of "innovative applications in tokenization, smart contracts, and decentralized finance protocols." This is where things get interesting.

Now picture DOGP using those 2 billion DOG tokens to develop a DEX focusing only on cannabis-related assets. Users would be able to buy, sell, and trade cannabis strains, cannabis licenses or even fractional ownership of cannabis farms utilizing DOG as the base currency. This has the power to truly transform the entire cannabis supply chain, creating a more transparent, efficient, and accessible cannabis industry.

Or they might want to spin up a DeFi lending platform. In here, DOG holders can stake their tokens to earn interest or borrow against their DOG holdings. This would help to float a new cannabis business’s boat with the capital they often have difficulty accessing through traditional channels.

These are just a couple of possibilities. The important part here is whether or not DOGP can start earning outside of the meme and start building genuine utility around the DOG token.

Here's the contrarian take: maybe the meme is the utility. Perhaps DOGP knows that in an era of social media, attention is the new black gold. And meme coins — as their name implies — are experts at attention-grabbing.

Or maybe this is a stroke of genius meant to draw a younger, tech-savvy audience over to DOGP’s other activities. DOGP could simply be playing 4D chess. In the meantime, the rest of us are just catching up on checkers.

The success of DOGP’s meme coin strategy relies on their creativity. They need to execute well and be nimble enough to respond to the fast-changing crypto landscape. Sure, it’s a risk – this is a risk that can lead to great reward. It’s just as much a gamble that will explode in their face. Only time will tell if DOGP’s bet on DOG will pay off.