Non-fungible Tipples

NFTs have a far greater reach than merely Angry Apes and Beeple—there are real benefits in the wine world too

- Sarah Heller MW

Although there are some high‑speed aspects of the wine industry—wine investors saw some wines triple or quadruple in value over 2021—the wine world, as a whole, moves rather slowly. Thus, many observers have reacted with scepticism or bemusement as various major (and less major) wine players have plunged into the lightning‑fast world of cryptocurrencies, blockchain and—trendiest and least well understood of all—NFTs.

As somebody who also makes digital art and counts many crypto believers as friends, I’m less surprised than most by the wine‑NFT mash‑up. Once you get past the “but why?” aspects of the NFT universe, it does appear that NFTs can offer real benefits to the world of wine, especially collectibles.

While the first wave of NFTs involved the sale of digital images, NFTs are now being used to certify the ownership of real‑life assets too, with the JPEG merely acting as a visual demonstration of ownership—like walking around with a Ferrari key fob dangling out of your pocket.

This is where wine enters the picture. Wine is a real‑life asset that’s released as multiples that are treated as fungible, or interchangeable—one bottle of Penfolds’ Grange 2020 is largely considered the same as any other, but, since it’s a fine wine for long‑term ageing, it shouldn’t be. One bottle may spend 10 years slumbering in ideal conditions while another may be passed from loading dock to wine fridge to display case; they’re unlikely to be in similar condition when opened. Attaching an NFT to each bottle would expose that difference.