Fight against counterfeiters, rare spirits and wine producers to comply with NFTs

Fight against counterfeiters, rare spirits and wine producers to comply with NFTs

Made with a rare batch of cognac, only 250 bottles were ever produced, Hennessy 8 is signed by Israeli artist Arik Levy, referring to the art of motion.

In the world of premium beverages, limited editions for a small price are not uncommon. Such is the case with the Hennessy 8, which pays homage to the famous French Cognac brand’s 250th anniversary completed in 2015 and the brand’s latest change of command. In 2017, the left and eighth generations of the seventh-generation master bartender family, represented by Renaud Fillioux de Gironde, entered.

Hennessy 8 is made from a rare batch of cognac and only 250 bottles were ever produced – developed by Israeli designer and artist Arik Levy, referring to the art of motion. No., they hit the market starting in 2020 and cost about $90,000 per dose, or $3,600 per dose.

However, the 1st and 250th bottles cost more: the set sold for around $225,000, or more than 1 million reais. Since this is an auction, the highest bidder will take it (there are no interested parties yet).

The two bottles are more expensive because they are associated with NFTs — which in Portuguese means non-fungible tokens. It is an authentication technology similar to that used by cryptocurrencies such as Bitcoin and Ethereum.

In the case of digital artwork, NFTs are used to tell which one is real. After all, anyone can view it on the internet and even print it at the lowest resolution. On the other hand, only the person holding the NFT of such a work can resell it — also known as a digital certificate, equivalent to a deed of property.

Under the control of LVMH, Hennessy turned to NFTs in another way. The digital certificates sold by the brand actually correspond to two physical bottles filled with premium cognac.

Those who buy them will still be entitled to an opening case consisting of an imposing key, four handcrafted crystal glasses and an identification plate signed by Renaud’s predecessor, Yann Filloux.

Another important detail: Buyers will only get access to both bottles if they decide to redeem the digital certificate attached to them. Before that, they were locked in a high-security warehouse in Singapore owned by BlockBar, the first platform in the beverage industry to sell NFTs.

Since it begins airing in late 2021, the site will only sell exclusive products, developed in partnership with brands that need no introduction, such as Dalmore, Ardbeg and Glenfiddich.

Of the latter, BlockBar sold 15 bottles of the 46-year-old whisky for about $18,000 a bottle — the auction lasted just four seconds. He sold seven bottles of whisky from Johnnie Walker blended for at least 48 years. Bidding starts at around $34,000.

As was the case with Hennessy 8, the acquisition took place in such a warehouse in Singapore. It makes sense. Many people who bought a product on BlockBar have decided to resell it – apparently at a much higher price, which is the norm in the NFT world.

The platform also has alliances with wineries, such as Penfolds, one of Australia’s oldest wineries. It sells Magill Cellar 3 2018, a blend of Shiraz and Cabernet Sauvignon. A bottle of 300 is priced at $465.

Next month, Wokenwine, the first platform dedicated to fine wine, goes live. Unlike BlockBar, its goal is not limited editions, but to reach stratospheric figures in the incredible NFT market. Her intention was to use these certificates to prove the origin of expensive wines.

Burgundy’s famous Domaine du Comte Liger-Belair has announced an alliance with the new platform. Through it, he intends to sell the entire 2020 harvest. “It is necessary to ensure traceability and the integrity of the fight against counterfeiting,” said the winery’s owner, Louis-Michel Liger-Belair, who justified the decision.

With an inviolable digital certificate, the department will be able to prevent frauds such as those committed by Rudy Kurniawan. In the mid-2000s, in his 20s, the Indonesian introduced himself as a collector who loved Burgundy, breaking into the US tour.

It didn’t take long for him to trick many millionaires into buying the blends he made in the kitchen of his home in suburban Los Angeles as if they were very rare wines. In 2012, the FBI searched the address, and around the time the counterfeiters were arrested, they found bags full of old corks, empty bottles and stacks of labels.

It even has recipes that mimic old Bordeaux wines, such as the iconic Mouton Rothschild from 1945. Want to try it at home? Kurniawan used half a bottle of Pichon-Lalande, a quarter of a Napa Valley Cabernet Sauvignon, and an equal amount of oxidized Bordeaux.

He was sentenced to 10 years in prison and fined $20 million, in addition to $28 million to be paid to victims – he was released in 2020 and then deported from the United States, where he was deported during his heyday . illegal.

For example, he made $24.7 million in 2006 from bottles he sold through auction house Acker Merrall & Condit. It is estimated that many of the wines Kurniawan poured onto the market went unsuspected and provoked. Novelty enthusiasts insist that NFTs leave counterfeiters — and anyone else — at a loss.

Notably, according to Statista, the global wine market will be worth $420 billion this year. According to data from the same platform, sales of NFTs in the first half of 2021 — just starting but growing at a dizzying pace — reached $1.2 billion. Combined, these two universes—and the universe of alcoholic beverages—can yield even more numbers.

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