CruTrade has launched a trading platform NFT— a wine platform powered by the Avalanche blockchain. Collectors will now be able to trade tokenized bottles of wine, and producers of the original product will receive a 25% commission.
CruTrade is built on top of Crurated, an existing members-only digital wine club. Crurated sources wine directly from producers and then creates NFT for each bottle to confirm its origin and trace its history on the blockchain. Physical bottles of wine are stored in a specialized Crurated vault in Burgundy.
The new platform will help solve problems in the secondary wine market. For example, traditional resellers face high commissions, logistical difficulties, and the risk of damaged bottles during transportation. Collectors sometimes have difficulty verifying the origin of wine, making the market vulnerable to fraud. CruTrade solves these problems by tokenizing bottles, ensuring secure and efficient trading.
The value of the assortment sold on the CruTrade platform is currently estimated at $60 million.
The company said that integrating with the Avalanche blockchain team was a strategic choice to leverage the blockchain’s capabilities for fast and low-cost transactions.