Alti Wine Exchange is revolutionizing the world of alternative exchanges and wine investments with the launch of its electronic platform.
Alti Wine Exchange and the Blockchain Technology
The first one is that Alti Wine Exchange does not accept nor trade with crypto currencies.
The second one is that Alti Wine Exchange seeks cooperation with legislators and regulators in the field of consumer protection in Liechtenstein having the objective to gain legitimacy in European law regulated markets.
Alti Wine Exchange therefore sees itself as a valuable addition to the existing financial system and wants to participate fully in it.
“Liechtenstein is taking the helm of regulating the blockchain technology and cultivating a regulated epicentre to providing an efficient, secure, and transparent blockchain trading environment to clients worldwide,” said André Terlinden, Head of Legal for Alti Wine Exchange.
The wine tokens covered by assets is probably the most innovative aspect.
Tokens Covered by Physical Wine Assets
Most crypto currencies do not have any coverage. That means that ultimately their underlying value is zero.
That is one of the reasons why they fluctuate greatly in value, as there is no underlying value that can serve as a benchmark in price formation.
The Alti Wine Exchange on the other hand, is fully covered by unique high-quality fine and rare wine, such as the wines already listed at the exchange.
Each of these wines have a retail market price for reference in the consumer market and therefore it is extremely unlikely to see the same kind of volatility as the one seen with crypto. In fact, for Alti Wine Exchange, it is important to go beyond retail customers and reach institutional money.
Alternative investments are growing in popularity as institutional investors including pension and endowment funds are increasingly allocating money in them as they realize the long-term benefits of this asset class.
Regulations limiting many types of alternative investments to accredited investors are meant to be both a sophistication test as well as a protective measure, but Alti Wine Exchange claims the offered wine investments are open to retail investors because it is a consumer product. This is because Alti Wine Exchange does not issue securities or cryptocurrencies.
Wine investment is not a complex marketplace
In fact, because all wine traded at the exchange at some point in time will be transformed into a consumer product.
Alti Wine Exchange is taking a long-term view.
This exchange exists to help the world of fine and rare wine. Alti Wine Exchange is doing everything to make this vision your reality and it has already made significant progress in a short period of time. It is the first digital wine platform with a global diversity.
Unlike crypto currencies whose valuations go through the most extreme emotional rollercoasters, wine tokens are assets of passion and are scarce, difficult to produce and a long-term asset with real value.
Wine tokens while radical, is the answer to trade wine as an alternative asset, with no limitations while having all traditional financial asset advantages.
Alti Wine Exchange is a metaphor for the alternative assets themselves
It is what happens when people of common tastes are able to find each other over vast distances to find the value on their niche market.
All the success that Alti Wine Exchange will enjoy only exists as a means to an end (improving investment on real assets via a mutual exchange). It’s not the end itself that matters but the adoption of the marketplace.
Given the digital world we live in, the future is a tokenized form of physical assets for which wine is just the first asset. This is significant because now unaccredited investors have access to previously inaccessible wine investments, effectively expanding the universe of investment product. Unlike a private security which is inherently risky, because it can ‘’go to zero’’, a typical wine token is backed by the real asset a fine and rare ‘’bottle of wine ‘’, the required potential return is therefore quite high.
Learn more about Alti Wine Exchange on altiwineexchange.com
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This Guest Post was written by Paulo Pinto, Founder of Alti Wine Exchange.
Julien Miquel, Founder of Social Vignerons, is involved into the Alti Wine Exchange project as a Consultant and Wine Chief Officer.