How BAXUS Offers a Comprehensive Solution to Spirits Collectors on the Blockchain

Non-fungible tokens (NFTs) are here to stay (probably). Designed as fraud-proof digital certificates of ownership and authenticity stored on the blockchain, NFTs are set for a compound annual growth rate of 47%, which means that by 2032, the market will be worth an astounding $692.4 billion, according to a report from Decipher Market Insights. And yet most people (70% of Americans) don’t even know what an NFT is. 

And many who have heard of NFTs have some questions. Between the Taco Bell-themed gif collection that went for $69 million and the $450,000 collection of surreal digital furniture, set to be placed in any 3D virtual space, the entire field of NFT carries whiffs of deep inauthenticity, even fraud lite. And yet more mainstream companies, from Nike and Louis Vuitton to Robert Mondavi and Glenrothes, are releasing products tied to NFTs. 

It may still be unclear if NFT investing in the wave of the future or a strange bubble that will eventually float into the ether, but either way—or, if the reality is somewhere in between—the number of organizations cropping up to assist investors in highly specific segments of the NFT market. 

Old Ramshead photo courtesy of Baxus

A Comprehensive NFT Space for Spirits Enthusiasts

For those interested in the alcohol space, BAXUS, based in Woodland Hills, N.J., is one of the latest companies claiming that it is changing the way investors are trading NFTs. BAXUS provides a platform for trading and collecting items like whisky, 24/7/365, with instant payment. But the team also says that the service authenticates and insures assets, so owners can buy and trade without fretting. 

Todd Wiesel photo courtesy of Baxus

Alcohol-adjacent NFTs authorized via BAXUS offer “proof of ownership of a real physical good that has been authenticated and stored in a secure, insured, temperature-controlled vault,” says CEO Todd Wiesel.  This guarantee of authenticity, Wiesel says, is prompting NFT newbies to engage and “learn more about how they can get involved.”

BAXUS also works differently than most NFT companies in the spirits space, with more of a comprehensive approach to collecting. “We aren’t just releasing new products for distilleries,” says Wiesel. “Currently, there are $4 million worth of bottles stored in our vaults, and another $5 million in whisky casks that are about to be listed.”

The time that investors plan to “sit” on a bottle varies dramatically, but can roughly be correlated to the price paid, Wiesel says. “Something that is selling in the $100-$500 range will most likely be sold within a year or two, some of the larger bottles that we’ve sold for $20,000-$100,000 will most likely be held for a few years,” says Wiesel. “We also have a very cool feature coming soon where collectors can take loans secured by the whisky that is stored in BAXUS vaults, so we may see people holding their bottles for longer.”

Background of BAXUS

BAXUS was founded by a team of whisky lovers and collectors, and their interest in and love of spirits has defined the company’s ark. 

The Macallan photo courtesy of Baxus

“We love to collect, but we also really love to get together and enjoy great whisky,” Wiesel says. “BAXUS users can redeem their bottles at any time, so while there are definitely users who will be focused on the trading and financial investment side of whiskey, we are also looking forward to helping people find those special, sentimental bottles that they can enjoy with their friends and family. We’ve already had a user who bought a bottle from the 1940s because it was their grandfather’s birth year, so that they could share it with their family. Whisky has always been about bringing people together and whether it’s to share a dram or to make a trade, BAXUS is here to facilitate it all.”

That blend of love and commerce is ultimately, investors say, what draws them to the NFT spirits space in the first place. 

Springback photo courtesy of Baxus

“I’m an enthusiast and a collector,” Devan Leos, Disney-star turned NFT entrepreneur, says. “I began because I wanted to experiment and taste different types of wine and whisky. I also wanted to be able to impress people at parties, gatherings and so on with my knowledge about the wine and whiskey I was drinking.  The reason I like NFTs is that it makes the process of buying and collecting online much more valuable than before. Now the proof of ownership is stored on-chain and it brings communities across the world together. I don’t see NFTs as a gimmick, but rather a great way to add more value to digital auctions.”

Future Outlook

As of May 1, collectors have poured $37 billion into the NFT marketplace this year alone, outpacing the rate of investment last year, which saw $40 billion for the entire year, according to a report from Chainalysis. 

Can—and will—the love of whisky and commerce continue to be a compelling blend for investors? Will it grow? Watch this space for the latest.