We were finally able to host an in person event and get to know our community better 🙌 💙
The event was an Introduction into NFTs and how they can be used in the context of Wines. 💡🤓
Of course, we had to include a Wine Tasting as well 😋🍷
It was great to see quite a few had some knowledge about NFTs already but most were still unsure, if or how to get onto the NFT platforms (such as OpenSea) to buy.
First, we got to understand the concept of a "Non Fungible Token" (NFT):
An NFT is a digital asset that can represent real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are encoded with the same underlying software as cryptos (the blockchain technology on which it is built).
We learned that the hyped "bored Ape"'s average price came down several hundred percent to an average price of "only" USD 186'000 (vs Crypto Punks USD 72'200) , or that designers, such as Dolce & Gabbana, are starting to sell their fashion as NFTs including both a physical and digital representation of the clothing.
Another use case for NFT were membership tokens, to use them to gain access to certain exclusive club events.
Our partner, Farandole, introduced the marketplace they are building. The advantages to use NFTs to sell wines are:
to increase accessibility, e.g. by buying wine NFTs easily with a credit card
that the wineries continues to earn royalties throughout the trading of their wine (in contrast to the current standard where the winery only earns on the first sell of their wine)
track authenticity and ownership of the wine (especially important for high quality wines)
make wine trading more efficient
the brand can reconnect with the end consumer, a connection that has been lost in today's supply chain
⏩ Thus, it increases the access, efficiency and security of wine purchases.
Surely, NFTs are still a new field and currently, we can say whichever project does the best marketing or has the most famous investors, gains the most.
We will see which platforms, use cases and NFT projects will succeed in the long-term.
For investing purposes, it is clear that NFTs can be a volatile investment.
It is so important that we perform our own research and should not jump on a hype without understanding the implications and technology.
->This approach is applicable to any kind of investment we make in general.... Do Your Own Research.