Whiskey and rare wine collectors travel long distances to acquire the rarest and oldest bottles. Thanks to NFT technology, whiskey and wine lovers can now acquire rare copies without leaving home, BlockBars Dov and Sam Falic say.
As an asset, premium spirits have surpassed gold and the S&P 500 index in recent years. The number of collectors of these rare spirits has also increased by 582% over the past decade. The investment itself is completely crisis-proof.
However, there is a risk – namely damaged liquids. For example, if you buy a bottle of rare, high-quality wine or spirits, it is possible that the bottle has been stored incorrectly or even counterfeit.
Improperly stored bottles may contain spoiled liquid that makes the bottle worthless. It is incredibly important for collectors who buy these luxury items to ensure that they really get the liquid they want. And once you have the bottle in your hands, do everything you can to store it properly to protect your investment. NFT technology offers the perfect solution for this.
Problems with whiskey collectors
Imagine this: you live in Singapore and are a collector of rare, expensive whiskey. In a branded store at John F. Kennedy Airport in New York – the only store of this brand in the United States – you will finally find the coveted bottle you are looking for. You call the store, but unfortunately they can not send the bottle. They can only accept payment if you show up in person at the store. In addition, they can only reserve the content if you have booked a flight through JFK Airport.
So you book a flight. You fly to New York for hours, pick up the bottle and immediately take another flight to Singapore, bottle in hand. It sounds a little far out and outdated in today’s very digital world, right? Unfortunately, the current restrictions on alcohol shipping have made this scenario a reality for top collectors. They travel all over the world to collect the bottles they have bought but cannot ship.
Scaling across e-commerce platforms has also become increasingly difficult as each country has very different rules and import laws. Even within the United States, shipping alcohol across state borders can prove more difficult than expected.
It is imperative to democratize the digital sale of luxury alcohol, and we can tackle this task with a modern approach.
We use technology (specifically non-fungible tokens or NFTs) to verify authenticity, allowing us to operate at the heart of the retail, e-commerce and distribution experience. Buying NFTs attached to assets is a better option for customers than buying them physically. The physical bottles are stored by us in a secure facility in Singapore. This facility has 24/7 temperature control, high security and motion sensors.
Customers can purchase the NFTs with a credit card or with Ethereum. If you want the bottle yourself, you can “burn” the NFT to get the bottle. Or you can resell the item through the BlockBar.com marketplace. Our customers can also give the NFTs away. The digital version of the bottle serves as a receipt and proof of authenticity. Just send an email to the person you want to give the bottle to and proof of ownership is transferred at no charge.
Instead of traveling a million miles to the bottle, customers can buy and store BlockBars fine wines and rare spirits anywhere in the world.
As we as customers did not find any solutions ourselves or anyone who could help us solve these problems, we developed our own solutions. We work directly with distillers and use NFTs as a commodity to prove ownership. Once the bottle has been shipped, it can no longer be offered for sale, as BlockBar can no longer vouch for the authenticity of the bottle.
Now collectors and connoisseurs can find, buy and store their favorite bottles properly without worrying about shipping, quality assurance or the risk of counterfeiting.
About the authors
Dov Falic is the co-founder and CEO of BlockBar, Inc. He was born in Miami and grew up in Panama City. As part of the next generation of the Falic Group and owner of the largest duty-free shop in the Western Hemisphere, Dov was exposed to the luxury and retail industry from an early age. Previous positions include Global Spirits Director and Executive Vice President of the LATAM division. In this role, Dov helped develop Paneco, the largest e-commerce delivery platform in Singapore and Israel, created one of the largest liquor distribution channels in LATAM and led liquor and wine procurement for DFA.
Samuel Falic Samuel Falic, co-founder and COO of BlockBar, Inc., was born and raised in Miami. Samuel studied both finance and law. His background in economics and law has enabled him to hold various positions in the company. After first working in the legal department, he switched to the role of director of business development.
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