New NFT type makes it easier for investors to invest in exclusive whiskey & co | 06/18/22

• NFTs liquor provides physical bottle ownership
• NFTs attest to authenticity and enable easier and more transparent commerce
• When the corresponding bottle is delivered, the NFT . is “burned”

In addition to watches, art, vintage cars, whiskey, and wine are popular alternative investments. According to t3n, a new sales record was set in the secondary market for premium spirits last year. Buyers don’t buy the bottles to drink, but as an investment that must eventually be resold at a profit. But in order to increase the value of a bottle of wine, whiskey & co, it must be properly stored and validated. This is not easy and above all is opaque. This is where liquor NFTs come in and want to solve these and other problems when investing in highly resistant spirits.

NFT Liquor acknowledges these rights

When purchasing NFT liquor, buyers not only acquire the digital image of the bottle on the blockchain, but also take ownership of the real bottle, for example, the corresponding whiskey. The NFT primarily serves as a Certificate of Authenticity certifying the authenticity and ownership of the bottle, but it can also be linked to other rewards, such as a tour of the distillery or a special packaging for the physical bottle in case of delivery. Bottles intended for sale via Liquor-NFT are either stored directly by the manufacturer or delivered to the warehouse of an NFT marketplace such as BlockBar, which specializes in these investment goods. This ensures that the deposited bottle is authentic and not counterfeit. An example of a well-known producer who has already used Liquor NFTs to sell a private batch of whiskey is the Scottish whiskey distillery Glenfiddich. She sold 15 bottles of Glenfiddich 1973, an Armagnac Cask Finish Single Malt Scotch Whiskey via BlockBar in 2021.

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Thereafter, purchasers of such or other NFTs alcoholic beverages have the option of simply keeping the physical bottle in the former storage facility, offering it for resale via the corresponding NFT marketplace, or having it delivered to them. However, since the value of the NFT depends on the bottle associated with it and its authenticity – validated by a trustworthy authority – the delivery has far-reaching consequences: Customers can either get the NFT version or the physical version of the bottle ‘at home’. But not both. . Since the originality of the bottle can no longer be fully guaranteed once it is in the hands of the owner, the corresponding NFT is “burned” upon delivery. That is, it is taken out of the market by being sent to the address of a wallet that has no owner, which means that no one can access it anymore. Thus NFT becomes worthless, but of course not the physical bottle. Provided it has not been opened, it can be resold in more traditional ways, such as rare spirits auctions.

CSF NFTs provide easier access and more transparency

“The value proposition of NFT spirits is very clear once you understand the process,” Samuel Valek, co-founder of NFT BlockBar marketplace, told Liquor.com. According to the magazine, the advantages of this type of spirits trading are, on the one hand, that manufacturers can prevent counterfeit products from circulating in the market. In addition, smart contracts on the blockchain allow a type of license fee to be paid automatically to the distillery with each resale.

On the other hand, there are also many advantages for investors. Since, according to “t3n”, information on the number of bottles stored or shipped on the blockchain is available and published by NFT Markets, collectors can always see how many bottles from the batch are still in circulation. Since the following applies here as well: the fewer bottles – eg due to burning NFTs – the more valuable they are. The price of the bottle can also be displayed, making the secondary market more transparent. The buying and selling process is also simplified through NFT Markets. “on me […] Traditional markets require you to be in the right place at the right time to snag a rare or exclusive bottle. Since NFTs are served online, you won’t really have this problem. Because of this, we see NFTs as a way to democratize the high-end wine industry,” BlockBar co-founder Dov Valek told Liquor.com. – which cannot necessarily be said about cryptocurrencies.

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