VinX/Medici Ventures To Use Blockchain To Reshape Wine Industry

A top blockchain accelerator, Medici Ventures, has disclosed its plan to invest in VinX. Similarly, VinX is a blockchain-based company with a focus on streamlining and tracking the wine supply chain. Medici Ventures, which is a subsidiary of online retail giant Overstock.com, leverages the features of blockchain technology to solve real-world problems.

Understanding the Role of VinX

According to the deal, VinX is to develop a tokenized wine futures platform that uses the Bordeaux futures model. Also, the VinX blockchain-powered platform will enable the sales and trading of wine futures transparently and securely. As a result, the platform will create a fair playing field for all users on a global scale. By levering the secure and immutable features of the blockchain, the VinX platform can effectively track the supply chain of wine from provenance to the final consumer. Indeed, the platform will effectively curb fraud within the wine supply chain and ensure that the cost of doing so remains bearable to the industry.

Why is this Move Critical for the Wine Industry?

Without a doubt, this move has become critical, given the spate of unwholesome practices that play out in the global wine supply chain. To put that into perspective, experts estimate that 20% of all wine in the world has counterfeit labeling. Hence, what this means is that a lot of vintage wine on local markets and brick-and-mortar stores around the world is mislabeled. For even the most experienced collectors, they find it extremely tough separating the wheat from the chaff. In truth, this should be a source of worry to all. However, VinX mirrors a glimmer of hope as it moves in to arrest this industry menace. To this end, VinX will use blockchain to link wine lovers to wineries for two cogent reasons. The company identifies these reasons as eliminating middlemen and providing customers with direct link to the product’s provenance.

Official Remarks

In his remarks, the founder and CEO of Overstock.com, Patrick M. Byrne, stated that the wine industry is still struggling to scale its increasing number of middlemen. Byrne noted that VinX aims to tokenize wine futures while reassuring wine lovers that the wine they consume is authentic. The chief executive added that they would reposition the industry as it boots out the “old boys’ network” by deploying blockchain technology.

Speaking in excitement, the VinX Co-founder and CEO, Jacob Ner-David, pointed out they are glad to collaborate with Medici Ventures to realize their vision. The CEO noted that they aim to democratize the wine industry by connecting consumers to producers directly. He praised Overstock.com for supporting the cause of direct-to-consumer strategy for over two decades, saying that they will tap in on their wealth of experience. In addition, Ner-David added that they will benefit from the blockchain leadership of Medici.