KRATOM!

Despite sounding like something that should be radioactive (like uranium) or a superhero's made-up weakness (kryptonite), kratom is actually a plant. Belonging to the same family as the coffee plant, it comes as no surprise that the things that the plant has done to make itself less appealing to being eaten are being used by people in a therapeutic way.

In case you weren't aware, caffeine is supposed to be a deterrent in the same way that capsaicin in pepper plants is a deterrent to keep the fruit from being eaten by animals with a sense of taste involving spice. Except, instead of caffeine, kratom contains mitragynine and 7-hydroxymitragynine which interact with the opioid receptors in the brain. The effect is similar; kratom can be used as a mild sedative, pleasure enhancer, and/or for pain management. Again, this is no surprise as the traditional uses for kratom, which is native to Southeast Asia and Africa, include but are not limited to medicinal use for pain management, a substitute for opium, and to improve productivity (kratom tea).

Why are we talking about kratom now? Well, earlier this year, U.S. Marshals seized about $3 million worth of kratom from an Oklahoma-based company that was selling kratom as a supplement. The Food and Drug Administration (FDA) has stepped up to warn about the potential dangers of kratom use as the demand for kratom has increased. Kratom is not approved for any purpose, but like many other substances, that hasn't stopped millions of Americans from taking it for a variety of reasons, one of which is to help treat the symptoms of opioid withdrawal. Which, to be clear, is sort of the FDA's fault anyway for approving prescribed opioid use for pain management despite knowing that opioids are highly addictive and difficult to break away from once the addiction has started. Hence, the opioid crisis in the U.S.-all it takes is having an opioid post surgery and "bam", a habit that cannot easily be stopped has begun.

Interestingly enough, in 2016 the Drug Enforcement Administration moved to have kratom classified as a Schedule 1 drug. What does that mean? It means that it has no medical uses and a high potential for abuse, however, the decision was reversed after public outcry, meaning that currently kratom is still unregulated at the federal level. Of course, that does not stop states from banning its use, and so far kratom is illegal in five states. In fact, the FDA released a statement in April of last year warning the public against using kratom because of its similar properties to opioids and potential for addiction. The question is, are the warnings to be taken seriously or ignored? States that have high opioid use may beg to differ about kratom's uses and more than likely see it in a positive light. However, it is obvious that not all states see it that way since kratom is banned in some places. Remember, just because it "came from the land" does not mean it is safe to consume without consequences.

Arbitrage is your source for business, finance, and tech info. Don't miss the podcast at https://www.arbitragetrade.com/podcasts