Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wiv.io: Are NFTs The Future Of Wine?

CryptocurrencyJul 28, 2021 01:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Wiv.io: Are NFTs The Future Of Wine?

As old as the world itself, wine has been an important cultural experience throughout human history – from worshiping the deities of wine in antiquity to what is now a multi-billion market. In 2019, the global wine market size was 364.25 billion, and it is predicted to reach 444.93 billion by 2027.

Apart from being a trophy for the collector’s community, fine wine is also an excellent alternative investment option. It shows impressively stable prices and is less volatile than other assets.

However, investment in wine and trade is still being treated cautiously by investors, as there are some obstacles; proving the provenance of the wine, transportation, storage, and high fees all make wine trade a challenge.

As the crypto era has already dawned on the art world with the revolutionary non-fungible token (NFT) technology, the question arises – what can it offer the ancient wine industry? Could it be the answer to modernizing wine trading?

The Archaic Industry Goes Tech

Tommy Nordam Jensen, CEO & Co-founder at WiV Technology, in an interview with DailyCoin, acknowledges the outstanding performance of wine in the investment environment.

"Wine is a great asset to get in terms of increasing price over time. Wine as an asset is one of the best-performing alternative assets. Wine outperformed stock markets, real estate, classic art and so on, so it has around 240% growth over ten-year periods," mentions Jensen.

Given the wine industry’s long history, digitization processes are coming to the market slowly. According to Jensen, only 5% of all wine is traded online.

"The industry itself is very old. It's been going for hundreds of years and so, trading and many processes are the same today as they were 300 years ago, it hasn't changed a lot," notes Jensen in an interview.

WiV Technology is currently on a mission to introduce crypto to the world of wine. The company partners with wine producers, distributors, and merchants worldwide to bridge the gap between archaic and new markets.

On the blockchain-based WiV platform, each bottle or case of wine is associated with a unique non-fungible WiV Token, just like each bottle of wine. These tokens are quickly and transparently tradable in NFT marketplaces. Jensen stated that

"We strongly believe in it, and we're building something unique in terms of the approach there and also the whole kind of utility of the wine. Decentraland, Cryptobox, or the Sandbox are the future in terms of digitizing real-world assets, like wine, and you need to play for physical wine to be presented, sold, and displayed in the metaverse.”

Instant Proof of Wine Provenance

One of the most important aspects of investment wine is its provenance and a record of how it’s been stored, which defines its value.

Approval of the wine’s origin comes with a massive load of paperwork that needs to be checked manually at every step of the process which slows up the trading potential.

Block-chain technology and tokens are excellent solutions to keep track of wine ownership. Decentralized structures make it virtually impossible to claim ownership of a tokenized asset fraudulently.

The blockchain contains information about the wine, which is stored and verified in small parcels worldwide. If any of these small parcels are changed, it is evident on the chain, where information doesn’t fit, and the changes are rejected.

It means that buyers and sellers can be confident that their investment is authentic and protected from fraud. By withdrawing paper-based documentation, transactions can be completed almost instantaneously.

Problems of Wine Transportation and Storage Solved

Another consideration for wine investors is the logistics and storage of their collection. NFT solutions for the wine trade are removing this obstacle to make the processes of wine trade faster and more progressive.

Investors no longer need to worry about the transport or specific storage conditions for their wine. Instead, they can hold a token that matches a bottle or crate of wine and guarantees authentication of their wine collection.

When wine is resold, only the NFT gets moved. Holding digital wine assets is not only a great way to guarantee provenance, but it reduces the risk inherent in collecting wine. There is a direct correlation between the number of times a wine bottle is moved and its potential damage. Several minutes in a hot place can have severe consequences to the value of the wine.

Cheaper and Faster Trading

The WiV platform allows trading ownership of wine assets faster and at a lower price than has been possible in the traditional market.

Blockchain technology introduces changes in the way the trading process is managed. Blockchain doesn’t have a central authority that needs to maintain its integrity, reducing the need for brokers and their associated fees. Therefore at the end of the day, investors have significantly less expenses.

These conditions are necessary for the growth of a far more liquid market than in the past. Tokenization is attracting a new generation of wine investors who want to add fine wine to their portfolio as a liquid asset.

Investing in wine via the WiV platform offers the best of both worlds: the efficiency, transparency, and speed of a digital market, with the history and establishment of a physical product.

On The Flipside

  • The main challenge that WiV faces is the archaic market, which might not be ready to go digital, as a typical wine investor may not be equipped to navigate a digital world.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Wiv.io: Are NFTs The Future Of Wine?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email