Overstock Invests In Blockchain Startup Tracking Wine Supply
The representatives of Medici Ventures, a subsidiary of an American online retailer Overstock.com, have invested heavily in a startup VinX from Israel, CoinDesk reports.
VinX supplies and creates a blockchain platform for trading wine futures. Thus, the company allows connoisseurs and collectors of this drink to buy expensive wine long before it is bottled and put on sale.
Distributed ledger technology provides a guarantee of protection against the purchase of a fake product and allows to monitor it at all stages, from production to delivery to a consumer, according to VinX representatives.
The transaction participants don’t name the exact amount of the investment, but Jonathan Johnson, the president of Medici Ventures, stated that his company bought out a 20% stake from the startup.
Blockchain will help to eliminate intermediaries in the wine industry. The technology will help to detect and eliminate fraud, and make the noble drink more affordable, Johnson believes.
Currently, the experts estimate the wine production market in the amount of more than $300 billion, while counterfeit products were sold for $3 billion in this area. According to the analysts, the amount of wine production will increase by 30% by 2023.
As previously reported, Patrick Byrne, CEO of Overstock.com, sold 10% of its shares in the company.