The death of fake wine with Alti Wine Exchange

by Dec 21, 2019Wine Trading Academy0 comments

julien burgundy 4.jpg

Wine has been considered an investment for many years, but more recently with the explosion of Chinese wealth, fine wine has been recognised as a genuine alternative asset class, providing a significant benefit for mainstream financial investor. However, the growing fame in China is matched with growing amount of counterfeits and copycats.

Alti Wine Exchange is filling a gap in the alternative asset class by providing a safe place for wine lovers to invest in rare and fine wines. A place where only producers can sell and investors are guaranteed an authentic product.

Alti only lists the very best wines, which are limited in supply.

Fine wines improve with age, and with increased consumption, it increases the rarity.

Only a transparent market can provide adequate valuations to fine and rare wines through a traditional process of offer and demand. Liquidity will bring optimum price even if those assets are unique and they have no revenue stream allowing for conventional valuation models.

Provenance is the critical factor in this business. Counterfeit trade has sprung up as prices for fine wines have soared. Australian wine commentator Jeremy Oliver estimates that “up to 50% of wine that retails for more than 35 USD a bottle in China is fake.”

As a result, wines at Alti Exchange come directly from producers and only producers can launch wines at the Exchange by a process of IBO (initial bottle offer), offering the wine to investors. This ensures that no one has tampered or sabotaged the wines.

Through the IBO the wine goes to the market and, is then moved to the bonded warehouse acting as depositary to Alti Wine Exchange. The IBO proves the immaculate origin of the wine.

The wines are then stored at Bordeaux City Bond vaults where they provide the optimum environment by carefully regulating temperature, humidity and other microclimatic factors.

As the owner of a bottle bought at Alti Wine Exchange, you (the buyer) have the property through a blockchain contract and a regular account, proving your ownership of the wine as a physical asset.

Wines that are removed from the exchange and therefore leaving the bond depositary can no longer return. This is to prevent any kind of possible fraud or scam such as the one seen in this next clip that was taken in China

Alti Wine Exchange can offer you an asset class that can offer protection and low volatility.

Explore More from Our Blog

The Beginning and The End.

Alas, the sun has crossed the celestial equator from north to south. Summer is now quite uneasy, shifting into fall in the north, while life is springing into action down south. What a beautiful time of the year! When grapes are cut from the vine to create new wine,...

Ever heard of a wine cocktail?

DEAR READER, I hope some of you learned from the reader letter last week [hyperlink to Week Ten post] and checked your attics! You never know how much wine sits above you, waiting to be uncorked and decanted—on someone else’s dime! Dear Sommelier Ferdinand, I have a...

The Future of Wine

We humans are bold if nothing else. Unlike any other species (that we know of), only we have chosen time and again to go boldly where no other has gone before. This holds especially true to the modern European, the first to really “discover” ignorance. Though they...

What on earth is a ‘Wine Decanter’?

DEAR READER, It’s come to my attention that many of you are ill-informed, misinformed, and frankly, uninformed about how wine is to be consumed. Were I only a wine enthusiast, it would be wholly dispiriting. But—wine is my profession, and I’m obligated to recognize...

“What’s My Next Question?” – Benjamin Kaplan

What’s My Next Question? On a random day like today 11 years ago, a legendary Harvard Law professor and lawyer, Benjamin Kaplan, died at 99 years of age. A rich, marked life that left an impact long after his last breathe. Apart from influencing the likes of Ruth...

Wine that Makes You Look Up

Wines that Make You Look Up Can you imagine having a device that magnifies your view and never thinking to look up, never pointing it toward the sky? Until August 25, 1609, nobody had. Enter Galileo Galilee, the man who changed the way we see and interpret all that is...

Should you be swirling your wine before consumption?

DEAR READER, Through all the melodrama of the past few weeks, I’ve neglected to educate the newcomers about the art of winetasting. So, I dug deep into my inbox for this query: Sommelier Ferdinand, I went to a ball last night and wasn’t aware of the proper pre-drink...

Sommelier Ferdinand answers “What’s the point of drinking wine from a hundred years ago?”.

DEAR READER, I’ve heard what you’ve all had to say, and I’ve decided to reach out to Jerry, once again, to bury the hatchet. Who’s to say if he would be open to making amends… but I made the effort, on behalf of all you insightful readers! I’ll keep you all updated on...

BOXED WINE AND AN ANGRY RECIPIENT – A FOLLOW UP

DEAR READER, Something unprecedented has happened. My assistant has received an additional letter from Jerry. Remember him—from last week [READ HERE] Well, our beloved wine purist wrote back after reading yesterweek’s column: Sommelier Ferdinand, I don’t care about...

Transcending Time through Wine

On August 11, 1888, The Scientific American published its 658th issue, replete with exciting findings. From “A Study on Whirlwinds,” to “The Distillation of Peppermint" and thoughts on the human conscious, this popular science magazine had already been around since...

Boxed Wine and an angry recipient.

What an experience, to receive all your criticisms. That would shake any normal individual. But I’ve spent years having my judgments under a microscope, so I’ve learned to shut my doors to it. You are all welcome to try—but I won’t be changing any time soon! Speaking...

Sommelier Ferdinand answers “What it takes to become a Sommelier”.

DEAR READER, As the grapes grow richer, so do the bottler and buyer! Wine is an investment, my dear readers. Never forget the long game! Now, for some advice you folks have solicited: Sommelier Ferdinand, I want to be a sommelier, like yourself. I have the respect for...