Recently, Overstock CEO Patrick Byrne revealed that his new blockchain-based startup called Medici Ventures will make a significant investment in the wine industry.
VinX is a blockchain-powered project that aims to integrate this advanced technology into the wine industry. It is well known that this industry is facing many problems such as fraud and counterfeiting of products. Due to the new collaboration, Medici Ventures and VinX want to focus on resolving such issues.
Additional to providing a high level of security and transparency, VinX will create as well an environment for trading wine futures. In an interview with Forbes, Patrick Byrne claimed that:
“Like any economy, the wine industry has difficulty scaling its middlemen-heavy systems in parallel with the growing demands of an increasing global market. VinX’s steps in tokenizing wine futures while allowing wine enthusiasts to know without a doubt that the bottles they purchase are filled with authentic wines will position the entire industry as a model of a new global economy that replaces old boys’ networks with frictionless trust through technology.”
The crucial world wine sector’s issue is counterfeit products – in a proportion of up of 20% of luxury wines in the world could actually be counterfeit. Moreover, the industry registers many cases of theft of deliveries.
VinX CEO and co-founder, Jacob Ner-David claims that the company’s objective is to “democratize the capital structure of the wine industry.” Ner-David elaborated that:
“We are democratizing the capital structure of the wine industry by bringing consumers in direct contact with producers early in the wine-making cycle. We are riding the wave of direct-to-consumer, which Overstock has been a leader of for almost 20 years. In addition, because we are registering all wine futures as tokens on a blockchain, we are bringing a powerful validating force that will go a long way toward reducing fraud.”
On the other side of the collaboration, Medici Ventures President Jonathan Johnson underlined that the P2P structure of blockchain tech is able to eliminate the need for intermediaries:
“It is often difficult for even the most seasoned collector to identify fake wine,” Johnson commented.
“Consider the experiences explained in the documentary Sour Grapes. To combat this growing concern, VinX plans to use blockchain to connect wine lovers directly with wineries, eliminating fraudulent middlemen within the industry and providing customers with a direct line to the source of the products. Medici Ventures has been looking for a good supply chain investment in the blockchain space. With the VinX team’s industry experience in the wine industry and in software development, we’ve found an opportunity we really like.”