07 Oct 2021 · 2 min read

WiV Technology To Take Lead Investor Role In Forthcoming WiVX DeFi Fund

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Image source: WiV Technology

WiV Technology, the platform for tokenized wine trading, has announced the launch of WiVX, a USD 10 million DeFi fund governed by its WiVA token. Following the launch, wine traders will gain further access to collateralized funding opportunities.

Supporting Vineyards With Decentralized Funding Solutions

Per the International Organization of Vine and Wine, by 2022, the total sale volume of wine is expected to rise to 281 million cases, worth USD 32.9 billion, for a CAGR of approximately 3%. However, trading wine in the traditional market is a complex process, clouded with extensive paper trails, bureaucracy, and brokers, which add to the overall cost. This is where WiV Technology enters the picture, delivering the first-ever blockchain-based approach for fine wine investing.

By introducing the concept of tokenization of wine and related assets, WiV Technology bridges the gap between vineyards, wine merchants, consumers, and investors, making it faster, easier, and cheaper to invest in the burgeoning wine industry. To further empower vineyard owners, wine producers, and merchants, WiV has announced the launch of WiVX, a USD 10 million DeFi fund that will feature community governance via its native WiVA token. WiVX stands out as one of the first DeFi funds fully backed by real-world assets, combining the best features of blockchain and cryptocurrencies with the wine industry’s solid multi-decade performance.

The WiVX DeFi fund will feature WiV Technology as the lead investor. It is fully community-funded, meaning anyone can participate in the fund by staking their WiVA tokens to earn passive returns and engage in governance activities. WiV's proprietary algorithm will identify suitable wines to include in the fund to outperform industry indices based on elements like weather satellite data analytics, statistical analysis of historical trends, and insights from top wine industry experts. 

WiV Technology co-founder Håkon Harberg asserts, “Identifying exceptional wines before they are recognised by the rest of the market motivated our progressive data-focused approach to wine investing. Our data analysis methods and proprietary insights will help this fund maximise returns and stand independently from other industry indices. Developing it as a DeFi fund based on physical assets means that we can make participation efficient, transparent and relatively low-cost. It is an important next step to our goal of creating value to our ecosystem token WIVA, making this type of investment open to a far wider audience.”

Simplifying Wine Finance By Virtue Of Blockchain Technology

Powered by its governance and utility token, WiVA, WiV Technology modernizes the traditional wine industry and creates new investment opportunities by incorporating the world of decentralized financial (DeFi) products.

Founded in 2018 by Tommy Nordam Jensen and Håkon Harberg, the WiV platform uses the Polygon blockchain to tokenize cases of physical wine produced by vineyards. Since each wine bottle receives its own NFT, it makes it easy for anyone to verify the authenticity and ownership of the physical assets. 

By leveraging some unique blockchain features, such as create tamper-proof identity markers and the ERC-721 token standard, WiV users can mint NFTs to identify and guarantee ownership and provenance of wine purchased as an investment without ever receiving the physical wine.