BY CNA team - October 5, 2018
Overstock invests in VinX
E-commerce firm Overstock’s crypto investment arm Medici Ventures has invested in Tel Aviv-based VinX, a startup that is building a digital wine futures platform.
While Overstock did not mention in a press release how much was invested in VinX, Medici Ventures president Jonathan Johnson told CoinDesk that a 20% stake was acquired for a “seven-figure investment”.
VinX is building the platform on the Zen blockchain. The platform’s futures will be based on the Bordeaux futures model.
The goal is to tokenise the wine futures and streamline funding for wineries while at the same time enabling the tracking of wines through the supply chain.
With 20% of all wines conservatively estimated to have counterfeit labelling, the platform essentially aims to reduce fraud by eliminating fraudulent middlemen by using blockchain technology to track the wines through the supply chain to the consumers at a cost bearable to the wine industry.
Overstock CEO Patrick Byrne says in the release that “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”.
According to the International Organisation of Vine and Wine in a report released in April, the world wine trade grew 4.8% in 2017 to US$34.53bil compared to 2016.