Before, During and After a Trade
Whether you are looking at vintage cars, antiques or fine wines there are three stages to a trade, pre-trade investigation, trade execution and post-trade clearing and settlement. WiV is seeking to make the process of selling and buying fine wine easier throughout the process.
Trades of pretty much any commodity broadly follow three stages. Firstly, there’s the pre-trade activities. For the potential buyer, this involves researching both the overall market and the specific product that they are thinking about buying. For the person trying to sell the product, there is also a fair amount of research involved, making sure that the price-point is right and that the potential markets are efficient places to trade.
The question of trust is also an issue for both sides. And the more expensive the product, the more work has gone into producing and appreciating it, the more important that trust becomes, irrespective of whether the buyer intends to consume the product or keep it as a long-term investment.
Trust is also an issue during the second of the three stages, the trade itself. For the buyer, they need certainty that the product that they are buying is as described, has been stored correctly and ultimately that the price is fair. For the seller, they need to be able to trust that they are going to receive payment for their product, that paperwork and administrative tasks will be completed correctly and that the deal goes through as quickly as possible.
Post-trade it is important that the products or services are received quickly and with the correct information. With investment grade products, having a clear provenance of a product, how and where it was produced, who has owned it and how they have looked after it, can give the product an extra premium if the time comes to trade it again.
The Fine Wine Sector
Focused on the fine wine industry, WiV has created a system that integrates itself will all three aspects of the trade while also complementing rather than disrupting existing systems.
During the pre-trade process, the producer allocates a digital token to each bottle or case of wine that they intend to sell. These WiV Tokens collect and securely store provenance, enabling buyers to research wines that are available secure in the knowledge the information is held on a tamper-resistant global blockchain.
When it comes to the trade itself, the WiV Token means that transactions can be cleared and settled at the touch of a button, complete with authentications and tax liabilities taken into account. Not only does this massively reduce the time it takes to clear and settle a trade, automating many of the administrative tasks removes many of the third parties that have needed to be involved with a trade, potentially significantly reducing the total cost of a trade.
Post-trade, every bottle of wine that has a WiV Token associated is professionally stored and held in secure locations. This minimises the physical movement of wine and helps ensure that it is maintained in peak condition, maintaining its value as a long term investment.
WiV has found a way to make trading fine wines easier without disrupting existing processes. At time of writing we are in beta testing, and intend to launch during the second quarter of 2019. If you’d like to hear more, please get in touch through our social channels.