Contribution to NFT to High-End Spirits
Non-fungible tokens are digital tokens that are not fungible. Unlike a dollar bill, it cannot be exchanged for any other dollar bill. NFTs are unique and are only transferred to a buyer who has unique ownership rights. You finally have that bottle of Scotch that you have been waiting for. It has been in storage for a few years, and it was purchased a few years ago. This is the first time that you have touched it. Your hands are the ultimate for a non-fungible token that’s been targeted and confused. The NFT collectibles are a conceptual asset tied to the mysterious yet confusing cryptocurrency investment option.
Since Samuel Falic and his cousin launched BlockBar in October, they have partnered with a wide range of spirits companies like Dictador Rum to release NFTs. Over the past few months, the demand for these tokens has been overwhelming, and the price of one of these has jumped significantly on the market. When you buy a liquor bottle, the physical product is the one you’re buying. It’s not shipped to you until its completion, and it’s kept off-site through the NFT collectibles or the distillery. With the rights to this bottle, there are a few options. You can hang onto it as a premium liquor investment, or you can sell it to a fellow investor. Either way, the bottle gets shipped to you once it’s finished and removed from the NFT marketplace.
This method increases the rarity of the NFT, as it allows investors to own it as a tradable asset. Its value goes up at a variable rate, so it’s not unlike what happens when a bottle is auctioned off. The other owner then gains because of the increased value of their investment, and they get to drink a customized bottle. NFTs are typically sold on platforms like OpenSea, where everyday bottles can be turned into something special. In the luxury space, NFTs are typically paired with experiences that are truly unique and memorable. One of the most notable examples is the two-bottle set from Hennessy, which featured a blend of the company’s previous master distillers. The Dalmore created a series of single-malt Scotch whiskies encased in a custom display tower.
Buying the NFTs
Contrary to popular belief, today’s NFT collectibles customers are not as far removed from the typical crypto image. According to Blockbar’s Samuel Falic, around 86% of its customers are male, and from the US these consumers are also tech-savvy and are looking for high-end products. An abundance of digital currency is needed to get a good deal for some. For instance, many high-end bottles can cost a lot of money. The Falics believe that their clients are mostly investors and collectors. Although NFTs are known for their volatility, they also have a unique appeal to those looking to invest in digital currencies. This transaction aims to shift assets away from the volatility of cryptocurrencies and towards a more stable market. This is similar to the secondary market for rare wines.