Meet the ‘other weed’, CBD!

Alright, we’ve all heard about the buzz around CBD, right? If not, where have you been hiding? CBD, or cannabidiol for the nerds among us, is creeping into everything from swanky chocolate bars to a $50 clay mask that promises to bring life back to your skin. And let’s not forget the tinctures and oils the hipsters are raving about lately. You see, CBD is sourced from cannabis, but sorry to burst your bubble, it doesn’t get you high. Fan-waving, it’s all the rage because it’s packed with alleged anti-inflammatory benefits.

The Business of CBD: Bigger Than Your Grandma’s Recipe Box

You ever wonder how much this boom is worth dollar-wise? Brace yourself. Currently, CBD is sitting comfortably on the $1 billion marker. But hold on to your hats folks… financial analysts of the moneymaking world are saying this crazy train might speed up to a whopping $16 billion by 2025. Whoa there, Nelly! Even celebs are getting in on the action. Ever heard of Martha Stewart? You bet ya, she’s making bank with her very own CBD line. And Snoop Dogg and Mike Tyson have put their hats in the ring too. In all fairness, who could resist the temptation?

Investing in CBD: A Walk on the Wild Side?

Now, with all this flashy, glossy hype, it’s only natural that we may want a piece of the pie. But hold your horses. According to Alan Brochstein, a big shot in the industry, it pays to tread lightly. A veritable CBD Scholar, Alan has his fingers in many pies, namely New Cannabis Ventures and 420 Investor. He warns that the CBD kingdom is a whole whirlwind of fun, but ambiguity parellels.

Treading the Evolving Minefield of CBD Legal Status

When it comes to CBD’s legality in the U.S, the picture’s about as clear as mud. Changes in regulations can give even the best of us whiplash. Doesn’t industrial hemp ring a bell? Well, in the eyes of the law, this is cannabis with THC levels less than 0.3%. No high here, folks. Its legalization was a big win for CBD. However, the legal matter is murkier than a Louisiana swamp!

The law folks known as the FDA have yet to choose a seat at the table, but when they do, it will be a game changer. If they lose their cool, it could be down to only the most obedient companies. But don’t sweat it just yet, the smart minds at FDA could also introduce reasonable guidelines that benefit the industry leaders.

Making Sense of State-by-State CBD Regulation

As if federal law wasn’t headache enough, state governments also want a bite of the cherry. Alan puts it all into perspective. Sometimes a state wants to play monopoly and demands that CBD products sold within its borders must also be made locally. Pretty cheeky, right?

Don’t let it fool you into thinking that all 50 states roll out the red carpet for CBD. Each state is stubborn in its own way and their rules can be as clear as alphabet soup. For instance, Colorado allows all parts of the hemp plant in food items, while Texas is going all out defensive even for minimal THC. For companies hoping for clear waters, these ever-changing regulations are a tough nut to crack.

Landing in the Volatility of the CBD Market

The path that the CBD industry is walking could make the most fearless adventurer dizzy. To illustrate, Alan likens it to a whirlwind with CBD products blowing up at gas stations, fancy retail areas, and everywhere else that can cram a shelf. However, leading CBD brands are hitting speed bumps. Thanks to regulatory headaches in critical states, growth is stalling. Brace yourselves.

Picking the Right CBD Company: Not as Easy as Pie

Itching to splash cash on publicly traded companies that are into CBD? Think hard! Even with bigwigs like Charlotte’s Web behind them doesn’t make it a slam dunk.

Alan suggests a word of caution. Those who don’t file with the SEC are a big no-no, even if they appear on your trading platform. Especially those that ride the CBD wave out of pure opportunism with no track record in the field. Instead, bet your money on companies that stick to the rules, aren’t afraid to pair with industry big-hitters, and are truly committed to creating spanking new CBD solutions.

The key, as in any good poker game, is recognizing who’s most likely to ride out this wild west and establish a profitable ranch on the other side.