Cask Coin: First ‘Whisky-Based’ Cryptocurrency Is Launched
As the strangest of companies – from juice bars and vaping rooms to adult content media and even camera enterprises – seek to get in on the action of digital currency, there’s a race to see just how many different kinds of crypto-asset the market can bear. Now, the North of Scotland Distilling Company is releasing what they call “Cask Coin”, the first digital asset with a value based on… whisky.
Getting High on Your Own Supply
Per the business’ website, Cask Coin is described as “an asset-backed cryptocurrency combining blockchain technology with a physical investment in the form of maturing Scotch Whisky.” The men running the show are Ricky Christie, head executive of the distillery, and Barry Millar, CFO of Cask Coin.
They explained that the currency already has an expanding portfolio, presently estimated to be worth over $40 million USD, and that those who purchase the coins will hold ultimately stakes in actual whisky.
“The idea of a new cryptocurrency pinned to maturing Scotch Whisky stocks was the result of brainstorming sessions with Cask Coin founder Ricky Christie, where we tackled the greatest challenge that Scotch Whisky distillers have to overcome – the traditional financing of maturing whisky stocks. We decided that Cask Coin holders should be able to participate on this journey, and the value to them would mirror that of the Scotch whisky stocks – which should, in turn, equate to more stability as a cryptocurrency.”
Cask Coin is a little different to other crypto assets launched recently — project organizers state explicitly that a token represents a share in a real, physical cask of maturing whisky. However, at this stage it’s not clear just how much of a share each token represents, or how legally enforceable the deal is. Cask Coins are ERC20 tokens on the Ethereum blockchain, but unless there’s a way to digitize the cask, there must be some other agreement binding the token to the real-world asset.
Cask Coin: Can Crypto Solve Certain Problems?
Millar feels the coin has a good opportunity of rising in value quickly thanks to several issues which are hitting the distillery industry at once. Presently, the demand for whisky is unnaturally high, and prices are consistently rising.
Furthermore, bottles are rushed into production to be placed on shelves instead of being given time to age properly, suggesting there’s a lagging supply of aged stock, though Millar and Christie say they’re looking to let bottles sit for years at a time before being released for purchase. This, Millar suggested, should make demand even stronger and help the coin spike in popularity.
From Private to Public
The coin was initially released on March 12th, where it was privately sold in the U.K. for approximately £8.15 GBP ($11.50). Purchases could be made in bitcoin or ether. It will soon be available to public investors, likely around early April.
The company’s website explains that whisky remains a strong investment as “it has several interesting characteristics: it does not go off like wine, but it can still be consumed, unlike gold and silver.”
Does Cask Coin sound like a legitimate enterprise? Post your comments below.
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