Fine wines as collectibles have been proven to be a solid investment – for the last 30 years, the wine has had an annual growth rate of 10%. Time and again, fine wine has shown itself able to weather economic downturns. During the Covid-19 recession, the Dow Jones and S&P 500 both plummeted, -22.7% and -19.6 respectively. Fine wine? It only fell -1.4%.
So far it sounds great, right? When you try to sell it you will find that it is easy. The majority of luxury wines are traded through a handful of channels such as auction houses or wine merchants. The fee usually takes up 20-35% of the transaction including the auctions, shipping and insurance.
Plus, the wine value is determined by the storage condition. The ideal wine storage temperature is 55 – 59 °F (12 – 15 °C) and 55 – 75% humidity. Simply put: your bedroom closet is no place for wine.
Now you can collect wines without worry about the storage or resale. VinusClub partners with sister company Cellar.io to offer the wine NFTs. There are a lot of articles to explain what is NFT. For simplicity, you can think of it as a proof of ownership here.
How it works?
- In order to receive a NFT, you need to have a crypto wallet. You can get one for free on https://metamask.io/download/.
- We sell the wine NFTs like all the other products. Instead of shipping the physical bottles to you directly, we help you to store the wines in the professional storage and deliver the wine NFT to your wallet. The storage is free of charge and you can store as long as you need.
- The NFT can be traded freely in any NFT marketplaces. We charge a 2.5% service fee for every transaction. The NFT marketplace will also charge a percentage of the service fee (OpenSea 2.5%). There’s also a small amount of gas fee for each transaction.
- You can redeem the wines any time. (The pre arrival wines have a future redeemable time). To redeem the wine, the owner will transfer the NFT token to an escrow account and pay for the shipping cost. We will ship the wines and burn the NFT(Shipping restrictions may apply to certain states regulated by the local law).