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Giles Cadman is Chairman of The Cadman Capital Group, a group of cohesive, complementary companies,
operating in the international trade, retail, leisure and investment markets.

A Winery In Argentina Just Created Its Own Wine Cryptocurrency

A Winery In Argentina Just Created Its Own Wine Cryptocurrency

Date: May 31st, 2018 Author: Giles Cadman Categories: What's New With Wine

The world has officially descended into crypto-mania! This time, crypto has made its way to the wine industry. Argentinian winery, Costaflores Organic Vineyard in Lujan de Cuyo, Mendoza, is planning to sell their whole 2018 vintage to become a wine-backed crypto asset.

It works like this: 1 crypto token is equal to one bottle of wine. Is this something you would invest in? Let’s learn more.

The OpenVino Project

The winemaker will make every bit of the production visible as a part of its OpenVino Project. If you’re wondering what the OpenVino project is - it’s the world’s first open-source, transparent wine, with Costaflores being the first backer.

It’s also the world’s first wine-backed cryptocurrency, aimed to expose Costaflores technical and business practices to the world. On its website, OpenVino notes transparency is a key value for building a sustainable, ethical, and profitable business. Even if it sounds a little new-age, sustainability in the wine industry is a passion of mine, something that I’m committed to. We’re always looking to improve.

Apparently, the quantity of the 2018 vintage is quite large – to the tune of over 16,000 bottles! The winemaker plans to sell each bottle (or token) for £3.55 per bottle after tax. Of course, the transactions will all be visible on the published accounting ledger.

The Winemaker

Interestingly enough, Costaflores was founded by a US expat and engineer in 2003. Mike Barrow is allegedly collecting data from sensors in his vineyard. He then uploads all of the data, writes the logs, and completes his financial books on the blockchain!

Will blockchain technology protect against fraud?

Well, technology just continues to push on ahead, and I for one, think it’s fantastic. Considering the multi-uses of the blockchain, I’m excited to see how it can be used other ways in the wine industry.

For example, blockchain technology is becoming increasingly known regarding wine fraud. It’s a transparent technology, with everything visible on the leger, so it would make it nearly impossible for fraudsters to sell fake wine. I know of a few fraud detection companies that are using blockchain for this purpose.

What’s next?

If you want a piece of this crypto token, you better get moving! Almost half the bottles have already been sold. It’s important to note the wine is a blend of Malbec, Petit Verdot, and Cab Sav, in case that is the deal breaker for you.

Once July hits, the holders of these tokens can trade them on the open exchange. Or, alternatively, they can exchange them for a wine bottle in 2021!

Which option would you choose?

It's English Wine Week! See offers from Blighty to celebrate on Cadman Fine Wines.

Giles Cadman is Chairman of The Cadman Capital Group, a group of cohesive, complementary companies, operating in the international trade, retail, leisure, and investment markets. Learn more about Giles.

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