Once considered a simple consumer product, wine has become a truly attractive investment to diversify one’s wealth.
The international reputation of French Grands Crus and the explosion in demand for very fine wines explain the craze for this alternative investment, not affected by the global crisis.
TheSafeBox (TSB) offers an innovative approach to investing in great wines based on the use of Blockchain technology and the know-how of producers to facilitate and secure investment in great wines.
Exceptional wine, a juicy investment that is not affected by the crisis
Wine is an asset that allows investment diversification in a prestigious tangible asset. The performance of French Grands Crus is uncorrelated with traditional financial markets and has moderate volatility.
The valuation process of the Grands Crus is based on the passage of time necessary to reach their gustatory peak. Great wines improve with time, and it can take decades to reveal all their subtleties. A limited production volume combined with a growing demand explains the reduction in supply and the upward trend in the prices of Grand Crus.
Wine is a representative sector that does not know the crisis. Indeed, far from having declined, sales of wine, spirits and champagne have increased by 15% in the first half of 2021 compared to the same period in 2020.
A juicy return based of course on the traditional law of supply and demand. The flagship “Liv-Ex Fine Wine 100” index, which represents the price movements of the top 100 fine wines sought after in the secondary market, rose by 23% in 2021. It outperformed many stock markets, such as the Dow Jones Industrial (18.7%) and the Nasdaq (21.4%).
Moreover, it is also a socially responsible investment (SRI) in that it allows to support wine estates by making their Grands Crus shine on an international scale.
Grands Crus are exported as a true luxury product, embodying the French art of living and the expression of French know-how.
The other advantage of wine is that it is an investment in a tangible and palpable asset. You can always consume it at your convenience.
The process of investing in exceptional wine has some obstacles slowing down the development of this market to which TheSafeBox tries to bring an answer by using blockchain technology, NFT and the know-how of professionals.
TheSafeBox, use the power of NFT to invest in wine
TheSafeBox works directly with the producers of Grand Crus to offer exclusive products while preserving these great wines.
The value of Grand Crus is essentially linked to their provenance, the quality of their conservation and the effective reduction of stocks.
Grand Crus increase in financial value as long as their taste value continues to be considered excellent.
The risk of counterfeiting and deterioration of the product as well as the cost of storage are the main difficulties for the buyer.
Given the privileged and exclusive relations with the producers of the greatest French regions (Aegerter, Faiveley, Grivot, Méo-Camuzet) the bottles will be kept directly by these professionals who guarantee the authenticity and the preservation of the products for a minimum of 10 years.
When purchasing a bottle via TSB, the buyer is given an NFT issued on the Polygon blockchain, constituting the title of ownership of the bottle and/or the case. This bottle is kept in the best conditions.
The holder of the NFT can proceed, when he wishes, to the resale of the underlying asset by exchanging this title materialized by the holding of the NFT. The characteristics of the blockchain technology allow it to have a certain history of the successive owners without affecting the integrity of the product.
The holder has the possibility to receive the product and has the possibility to “claim the physical bottle” process to have the product delivered.
In order to ensure a permanent link between the title and the reality of the existence of the underlying asset, the NFT will be destroyed by a burn process.
The exclusive sale on June 30, 2022, including 120 exclusive NFTs, was sold out in a matter of hours, illustrating the potential of this new investment method using blockchain and NFT for the wine industry.
