A CORK Company who made history with the auction of a rare Irish Malt Whiskey on the NFT (a non-fungible token) platform has sold the rare cask for over €83k.
Last week, Kinsale Spirit Company went to market with the first-ever Whiskey Cask represented by an NFT and successfully auctioned on OpenSea crypto marketplace, selling for an impressive $100,000 (over €83,000).
Kinsale Spirit Company was initially aiming to raise a minimum €60k from the auction to assist in establishing their new distillery near Summercove, Kinsale.
The rare cask is one of the few that remain from Cooley’s original distillery in County Louth and it was described by the sellers as a rare piece of history.
A non-fungible token is a unit of data stored on a digital ledger that certifies a digital asset to be unique.
The opportunity was presented to a private group of early investors in crypto who are in Kinsale Spirit Company's network.
The investment case for whiskey, particularly casks, is similar to Bitcoin in that both are seen as a store of value and are both asset classes that inflation fearing investors are increasingly flocking to.
NFTs allow crypto savvy investors who may be interested in gaining exposure to whiskey, or any physical good, to do so without the frictions and costs associated with traditional financial infrastructure.
Two bidders competed for the cask, which eventually sold for $100k. The buyer wishes to remain anonymous.
Co-Director of Kinsale Spirit Company, Colin Ross, described it as a novel methodology.
“Unique and rare whiskeys can be offered to a whole swathe of interested and liquid investors who want to see long-term value and collectability, while giving Kinsale Spirit Company increased resources to action our significant plans to build a distillery in Kinsale and export multiple brands on a global scale.”
Business partner Ernest Cantillon added that they are delighted to be bringing some technological innovation to the whiskey world, a space synonymous with tradition.
"Our plans for our own distillery in Kinsale are progressing quickly and this windfall will certainly help.”