Ellen Britt for CNT #NFT
According to a new article by investment advisors, The Motley Fool, wine NFTs are now a thing! But are they a good investment or simply a marketing gimmick?
First of all, what is a wine NFT? If you recall, NFT stands for non-fungible tokens, which is a certificate of your digital ownership and this resides on the blockchain. While some of these new wine NFTs are definitely making a marketing play, others are a bit more serious.
The folks at Motley Fool give the same advice to their clients about wine NFTs as they do to other NFTs: the investment is only as good as the product and the people behind that product.
Here’s the big reason to cheer for the adoption of wine NFTs: forgery and tampering of wines is a big problem in the wine industry, bleeding the industry of a whopping $3 billion a year in lost revenue. But with wineries using the blockchain to track every aspect of production, this could become a thing of the past.
The Fool also cautions that until this type of security has been thoroughly tested, it’s not immune to fraud. The blockchain likely won’t get hacked but wiley fraudsters will try their best to find some other way to mess things up.
Avoid Sour Grapes
Also be aware that some wine NFTs are actually wine related art, and are not backed up by a bottle of the good stuff. They also caution that unless you are an experienced wine connoisseur, your ability to pick a good wine NFT is not likely great, and you could be left holding a bunch of sour grapes. Cheers!
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