Very recently a decision has been made by Wave Financial that it had finalized an agreement with Kentucky-based Wilderness Trail Distillery to tokenize between 10,000 and 20,000 barrels of bourbon whiskey worth up to $20 million. Investors will be able to purchase asset-backed tokens linked to an inventory of whiskery barreled this year. According to the assumption of Wave, the fund will represent as many as 4 million bottles of bourbon. On the basis of report, domestic production capacity of U.S. whiskey has recursively expanded year-on-year to meet demand and the U.S. market of this faced the taste of renaissance.
The officials of the company think the fund provided investors with a rare opportunity to access this unique asset class because this asset class is traditionally unavailable because of high upfront costs and purchase minimums, low liquidity, scarcity of production capacity and technical know-how. The cardinal feature of whiskey is that it is not perishable over time and the older the whiskey is, the valuable it becomes. On the basis of the natural process, the spirit is stored in a barrel once distilled causing the ingredients start mixing and the water either evaporates into the wooden barrel. Because of this natural process, the flavor gets increased and makes it more valuable.
Throughout the process, investors can gain exposure to bourbon’s value appreciation and can gain from the welling of whiskey. Calculation of the value of the barrels on a quarterly basis is provided and investors also get a benchmark price for their token. Wave is working to benefit traders for better trading in the whiskey-backed tokens. The new tokens have made a high buzz among blockchain protocols indeed. But maybe they will consider launching the tokens on their platforms. The first two closes of the token were available for accredited investors from around the world and the final one is expected to take place in September.