Vinsent.Wine gives wine lovers an opportunity to buy good wine with significant discounts and to discover new wines before everyone else does. These are not good intentions or plans for future, the project works already. Our Chief Editor, a wine enthuasiast himself, installed the blockchain app by Vinsent.Wine and discussed wine on blockchain with Jacob Ner David, Vinsent.Wine CEO:
Q) Let me get this straight, you have figured out the way to sell really good wine cheap, via a blockchain based app, am I correct? What kind of discounts can one get via your app?
You got it straight! We are tokenizing wine futures, which means you pre-buy wine while it is still being made (but after harvest).
Discounts vary from winery to winery, in the current pilot with 13 wineries from Spain, Italy, USA and Israel the discounts (off eventual retail) range from 20%-60%.
Q) How exactly does it work? The press says you applied some old way to sell wine to blockchain?
Wine futures have been around for hundreds of years, mainly around old world Bordeaux wines, but they were only accessible to merchants who sometimes would pass on at a big markup to consumers. We are directly connecting wineries to consumers, and the tokenized wine futures are freely transferable.
Q) Are tokens involved in any way or you go through fiat money only? I read you have introduced wine tokens, what are they? Are they for internal trade only between the users in your app or you plan to list them on an exchange?
Right now you can buy wine futures using fiat or crypto, and then you have tokenized wine futures. Currently we are using Ravencoin blockchain, which works well to register classes of assets.
The goal is to create an easy to use exchange within the Vinsent ecosystem. Advanced users will be able to take their wine tokens out of Vinsent digital cellar (wallet) and even to move blockchains.
Q) Is your app only for b2b clients? Can we, end consumers of good wine, also get it cheap?
The focus is on consumers! Again, we want to bring consumers and wineries in direct contact, while using blockchain tech to inject a level of trust into the system.
5) Can wineries use your app to crowdfund? If yes, how? If not, do you have it in your strategy?
No, but down the line yes. However selling wine futures is already a version of crowd funding, as this allows wineries to pre-sell, thus getting cash in earlier in the cycle (as a winery owner I know how critical that is).
Q) Your investor is Overstock’s Medici Ventures, one of the largest and most active ventures in tokenization. Can you comment on the investment made, and how is your experience of cooperation with the big boys?
Medici has on their website three investment criterion, they are:
– democratizing capital
– eliminating middle men
– humanizing commerce
We answer to all three, and of course having the Overstock ecommerce experience is very helpful as well!
Medici believe in using blockchain tech to re-introduce trust and allow supply chains to be made more direct and efficient.
We have found them to be very knowledgeable and approachable. In addition we have been exposed through Medici to some of the leading thinkers and doers in the tokenization space which has greatly helped our understanding.
Q) What kind of targets does your project have, what kind of volume do you try to achieve?
Well, the wine world is made up of 50,000 wineries around the world generating over $300 billion a year. A big chunk of that could move to platforms like ours. Over time we expect to have thousands of wineries directly engaging with millions of consumers through our platform.
Q) How do you market your product to achieve these targets?
Good question. We have a two pronged strategy, helping wineries leverage their existing communities, and then doing top down marketing for wine lovers to explore and discover.
Q) In the wine industry, what else may blockchain be used for, in your opinion?
In time we will be using blockchain for bottled wine, so each bottle will be verified and traceable.