BarrelX announced the launch of a newly founded NFT marketplace for barrel aged spirits. The first sale on the BarrelX marketplace will fractionalize 500 bourbon barrels into commodity-based NFTs connected to the spirits. As a first-of-its-kind marketplace, this will open the door to opportunities, which until now, were reserved for industry insiders and heavily-funded market makers. Each barrel of aging spirits is uniquely identified and secured in bonded rickhouses, located in Kentucky.
BarrelX is a collaboration between Jupiter Group, a leader in art & tech integration, and a group of spirits professionals with over 50 years of collective experience in the alcohol industry. These groups are coming together to disrupt centuries old barriers and practices by evolving the way barrels of aged spirits are accessed, authenticated, held and traded, which will pave the digital road to access, authentication, storage, and insurance. The platform establishes both a primary and secondary market for barrel-aged spirits that alters the way the spirits industry can utilize blockchain technology. NFT holders will have the opportunity to participate in this journey at the ground floor with a product that becomes increasingly complex, desirable, and historically more valuable with age.
“The barreled spirits market is age-old. Millions of barrels of bourbon change hands every year without actually moving an inch. BarrelX is changing the game and enabling new innovation in a centuries-old industry,” said Matt Shirah, co-founder of BarrelX. “There are so many brands and so few producers, which means everyone is competing for a finite number of aged barrels. The market is inefficient and generally inaccessible. We hope that with BarrelX, we can open the door to everyday consumers and collectors who have interest in aged spirits by giving them access to leading distilleries and brands through this new technology.”
Buyers will have the option to choose from a variety of aged Kentucky Bourbon to buy, and eventually sell or trade. Once the spirit comes of age, as predetermined by the smart contract, BarrelX NFT holders have the option to sell the rights associated with that NFT or redeem it for bottles of the actual spirits from the unique barrel. The redeemable barrels will be aged at a minimum of 4 years. If permitted by State Law, NFT holders in the U.S. will have the option to have their spirits shipped directly to their residence. Shipping to NFT holders outside the US can also be arranged through an international customs broker but subject to the law of the recipient jurisdiction. Additionally, BarrelX NFT owners will have the ability to choose a unique bottle for their bourbon prior to receiving their shipment.
At the beginning of September, the spirits within the 500 barrels of bourbon will go on sale on BarrelX’s direct proprietary marketplace. Each barrel will be fractionalized into tenths, creating 5000 possibilities for spirit ownership in the form of NFTs. NFT holders can acquire,
trade, transfer or sell their NFTs directly on this marketplace. Both crypto payments and fiat currencies will be accepted in order to make these spirit NFTs accessible to the masses.
“I am thrilled to be part of BarrelX, a new and completely innovative company that was built using the latest web3 technology and world-class NFT artwork,” said Nicole McGraw, CEO of Jupiter Group. “By buying these NFTs you will be able to gain access to the aging spirits industry in a completely unique way for the commercial consumer. We pride ourselves on making the process easy, ensuring that your liquid has proven authenticity, and offering the best quality spirits. We’re excited to build a community that will take the first steps in democratizing and disrupting an industry that has been untouched for hundreds of years.”
The BarrelX NFTs’ art and metadata will change with the weather in Lancaster, Kentucky, where the barrels are being held. They will also include a countdown until the fraction of spirits bought are aged to perfection and ready to be redeemed for consumption. The BarrelX marketplace is powered by the Ethereum blockchain.
In addition to redeemable bottles of bourbon, BarrelX’s holder utilities and benefits also include IRL and metaverse events, limited edition bottle drops, a community of bourbon aficionados, and more. Additional spirits will be available in future releases.