NFT: the world of wine for geeks

Posted on 3 Dec. 2021 at 6:00 amUpdated Dec 7th. 2021 at 11:37

What’s New in Champagne? Tokenized Bubbles! In a perpetual creative effervescence, Dom Pérignon launched in October, only on the French market, limited edition boxes of his 2010 vintage and his 2006 rosé “designed” in collaboration with the megastar Lady Gaga. The 100 bottles – a few drops in the ocean of bubbles produced by Dom Pérignon – and their 3D NFT versions were put up for sale as a preview in a 100% virtual space. Hungry for “Creating rarity into rarity” and in search of new fans, the Champagne brand is the first in its sector to take the plunge.

Digitized creativity in an NFT pop-up, pop-up or flop? It comes up in the minds of digital natives under 40, the target audience. The boxes are sold in ether cryptocurrency at the speed of a champagne cork popping, while spilling a lot of ink. The traditionals, not to mention the old tokens, who don’t understand an ounce of newspeak and the concepts of tech will have to adapt.

NFT? The acronym stands for a non-fungible token, a non-fungible token. Unlike a fungible asset (for example, a 1 euro coin is equivalent to another 1 euro coin, they have the same value and are exchangeable, same for bitcoin), the NFT is both a unique non-tradable digital asset and a tamper-resistant asset. digital title, encrypted, registered and guaranteed by a blockchain. The NFT as a certificate applies to virtual products (a digital creation), real products (such as a garment) and physical/digital twins (the Dom Pérignon bottle and its 3D version, CQFD).

Nearly $70 million for an NFT work

Artists were the first to understand the unique and unreproducible NFT’s interest in their digital works. retrospect. In the spring of 2021 it will be work Every day: the first 5,000 days sold for $69.3 million at Christie’s. Beeple, whose author was hitherto unknown to the battalion, is propelled in a few steps to the rank of third most expensive living artist in the world, behind Jeff Koons and David Hockney. In fact, his NFT is coded in such a way that each future trade earns him a 10% royalty of the amount of the sale. Enough to generate vocations…

Rarity, exclusivity, desirability, traceability: NFTs are of course interesting for luxury. Gucci, Dolce & Gabbana, Karl Lagerfeld, Givenchy… are already exploring their potential with limited series pieces, often made with artists, while LVMH, Prada and Cartier have launched the first international luxury blockchain, Aura Blockchain Consortium. A widely used tool to develop NFT solutions, fight counterfeiting, innovate stories, trace the history of a product from raw material to finished product.

All this can be transposed into the world of great champagnes, wines and spirits, coveted and collectibles. Glenfiddich has a rare 1973 single malt for sale for $18,000 and other limited edition NFTs on BlockBar—the buyer of one of the fifteen bottles is already selling it there for $199,000—and a 45-year-old Colombian Dictador rum, in a Lalique decanter, is offered there for $25,000. However, there is still a long way to go from the cut to the lips.

Virtual for a whole earthly universe

“We are just at the beginning, the industry’s first attempts at NFTs date back a few months, barely a year. The virtual, the dematerialization are still difficult to explain in a universe that is essentially very earthly”says Guillaume Jourdan, brand strategy advisor at Vitabella Luxury with big names in wine. “And yet NFTs come in perfectly for itnotes Arnaud Daphy, partner of the agency Sowine, specializing in the marketing of wines and spirits. Because all criteria are met: ‘collectability’, fan communities, speculative character, need for authenticity and traceability. † So who are the bold ones who have already succumbed to the NFT sirens? Large groups, prestigious brands, celebrities and even “small” winegrowers.

Photo from the series “Champagne” by Nick Rees (left). Exclusive sculpture designed by Lady Gaga for the Dom Pérignon jeroboam, to be discovered in a 100% virtual pop-up store.Nick Rees/Gallery Stock; DR

Dom Pérignon is a pioneer in champagne. In still wines, the Californian estate Yao Family Wines, owned by an NBA star, was the first to offer its 2016 Chop cabernet sauvignon in NFT last April, associated with a digital work. Pioneer among the Bordeaux Premier Grands Crus Classés, Château Angélus. In partnership with CultWines, the world leader in fine wine investment, the famous Saint-Émilion estate auctioned an NFT this summer, including a barrel Angélus 2020 first, a 3D artwork that represents the emblematic clocks of the house and VIP experiences on the castle. All this for the equivalent of $110,000 in USDC cryptocurrency, on OpenSea, the leading NFT marketplace. way for both parties “to creatively engage a new generation in technology, digital and cryptocurrencies”

Penfolds, the flagship of Australian giant Treasury Wine Estates, has just launched its NFT on BlockBar, the first direct selling luxury wine and spirits platform. It grants ownership of a 2021 barrel of Magill Cellar 3 vintage for the equivalent of $130,000, convertible to 300 tokens for as many bottles in October 2022, and includes exclusive experiences. A collector as this wine will not be available for public sale. Also in Australia, Dave Powell is the first trader in the world to sell an entire vintage in NFT: 100 barrels 2021 from his new Neldner Road brand.

Hello Fam, 100% NFT wine brand

Fan effect plus collector effect, Sarah Jessica Parker, the star of “Sex and the City”, ticks all the boxes with the NFTs of Invivo X, her New Zealand wine. The winery that produces it “Studying the possibility of opening a virtual wine store where the purchase of a bottle by a digital avatar results in the delivery of a physical bottle to home, anywhere in the world. NFT holders can get exclusive access when the store is opened in the metaverse. † The metaverse is a series of interconnected virtual spaces in which users share immersive 3D experiences. Finally, the first fully NFT wine brand, Hello Fam, created by two online wine and NFT entrepreneurs, launches its first cuvée, Genesis 2021, a blend of Israeli Syrahs.

Among the “little ones” we are also interested, with more daring than financial means. Flavien Darius Pommier, 26, owner of Château Darius, a modest seven-acre Saint-Émilion grand cru, launched the trend in France in April for, he says, “modernize the company and seduce my generation”† This fan of art and technology, educated in London, friend of Farokh Sarmad, who advises luxury brands, seems like a marketing ace.

Photo from the series “Champagne” by Nick Rees (left).  Clocks from Château Angélus in 3D, part of an NFT package including a barrel of Angélus 2020 and scoop and VIP experiences.

Photo from the series “Champagne” by Nick Rees (left). Clocks from Château Angélus in 3D, part of an NFT package including a barrel of Angélus 2020 and scoop and VIP experiences.Nick Rees/Gallery Stock; DR

He has already sneaked to the Elysée Palace and created a personal cuvée for mogul Mohamed Hadid, whose daughter Gigi, a supermodel, willingly poses with the bottle… As for the Englishman Mike Barrow, founder in Mendoza (Argentina) from Costaflores , he sells his wine through his own crypto asset. With each harvest, he evaluates how many bottles he will have, issues an equal number of NFTs, which are priced based on demand. After three years of aging, the wine is ready and the holders of the NFT can have the bottles or keep their tokens, which also allows them to become shareholders of the vineyard. This is part of the “smart contracts” of NFTs.

More turnover

Guillaume Jourdan looks further. For him, the advantages for producers and oenophiles are many: “In Bordeaux, the owners sell a scoop to traders and they don’t know the end customer. With the NFT, they can trace every bottle, know who bought it, where it is stored and under what conditions. The customer who buys a box and scoop pays for it immediately, but is not delivered until two years later. From now on he can resell his NFT illico. So even before the deliverable there can be a chain of buyers adding extra value to each transaction.he explains.

“And nothing prevents including in the smart contract a fee for the owner for each operation. It’s more revenue. In Burgundy, where the sale of the Hospices de Beaune has just broken a new record, one can imagine that the buyer of a 220 liter coin will spend 300 pennies the next day.continues the expert. In Champagne, the large cuvées mature for eight or ten years in the cellar before being released on the market. They can be sold in NFT once assembly is complete, immediately valuing the stock. Tomorrow the turnover can be freed from the physical and the temporary! This is the ultra-positive side of NFTs, in addition to the cool message being sent to younger generations. †

It is clear that the winners of this new virtual economy will be the strongest and most sought-after brands that have the resources and talents to afford the necessary technology. Their customer avatars will be displayed in the metaverse, the final stage of dematerialization. Because it will always be about social status, where real and virtual are two sides of the same coin.

The best of all worlds then? Is there no risk of total decorrelation between the NFT and the real product? “No, we rely on very tangible products theresays Arnaud Daphy. They are not a few coded pixels as in digital works. Ultimately, it is always about delivering the physical bottle to the customer. † “The virtual economy will add value to the real economyadds Guillaume Jourdan. One can imagine brand extensions ad infinitum. †

How and where to buy?

You have to open an account on a general or specialized marketplace, then create a “crypto wallet” (portfolio) on MetaMask and fill it with cryptocurrencies (bitcoin and ethereum are the strongest, the first is worth about $58,000, the second more of $4,000).

Please note that blockchain wallets are secured with a 12 word sentence. Forgot, no way to access the wallet and all NFTs are lost. Among the platforms specializing in NFT wine sales: WiV, already up and running, which will launch in 2022 the WiV Legacy Collection (456 wines from more than twenty regions and ten countries) and BlockBar for NFT spirits and luxury wines.

https://opensea.io/assets/wiv and https://wiv.io

https://blockbar.com

Winedex, to secure your purchases

In the fine wine sector, authentication and traceability are crucial. iDealwine, the leading player in wine auctions in France and the world leader in online wine auctions, is innovating with this until now unique app, which is based on smart contracts and tokens secured by the blockchain. Each valued bottle (more than 90 checkpoints) is sold with a tamper-resistant RFID tag that guarantees its identification and allows it to be linked to the tamper-resistant digital information in the Winedex blockchain. In Apple Store, Google Play and https:/ /www.winedex.io

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