NFTs are overwhelmingly valuable, with many selling in the tens or hundreds of thousands of dollars range and some have even sold for millions of dollars. Well, yet another sale just hit the tape that goes down as the largest to date.
A cask of whisky coupled with an NFT collectible sold for $2.3 million, but why?
Why the NFT & Whisky Sold for $2.3 Million
$2.3 million is a ton of money, though it doesn’t come close to the $69 million record NFT sale. Nonetheless, it’s a huge chunk of change and many wonder what made the sale such a valuable one.
Well, first off, there were two products included in the lot. The first was a cask of Scotch whisky, which works out to 608 bottles of the stuff. The Whisky measures at 51% alcohol by volume, but there weren’t details released as to how long the cask has aged to date.
One thing we know is that Macallan is a high-end single-malt scotch, one that has the potential to fetch a big chunk of change. In fact, depending on the age of the whisky and whether it’s in a glass bottle or a crystal one, it generally sells in the range between $60 and $7,800. That brings the average price per bottle to a whopping $3,930.
So, if the whiskey in the barrel is the average quality produced by the company, it alone is worth the $2.3 million, minus the cost of bottling, and some of those bottles can get quite expensive.
Nonetheless, I believe there’s a catch. You see, nobody knows just how old the cask of whisky is and the most expensive bottles are the oldest of the old. If it’s a fresh cask, to demand such a high price, the buyer would have to hold onto it for decades to let the whisky age. So chances are, at this stage, the whisky itself isn’t likely to be worth anywhere near the $2.3 million paid at auction.
However, there’s another caveat.
The whisky wasn’t the only product included in the lot. In fact it came with an NFT, a type of digital collectible that’s met with significant hype among the arts, gaming, music, and media communities.
The NFT is a commissioned piece of art from Trevor Jones, who was asked to create an abstract painting of the cask. That painting, now known as “The Angel’s Share,” has been digitized and logged on the blockchain as an NFT.
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The NFT May Be More Valuable Than the Whisky
While whisky enthusiasts may have looked at the lot, seeing the cask of Macallan as the real price, NFT enthusiasts are on the other side of the coin. For them, the big win was buying the first digital collectible released by Macallan and one of the first digital collectibles in the spirits industry. To them, the winning bidder won the NFT and got the cask of whisky as an added bonus.
Why would the NFT itself be so valuable?
I’ll give you the basics by saying that NFTs provide validated ownership of digital assets and that this particular NFT is a unique piece of art developed by a well-known artist. OK, great, and yes, Trevor Jones artwork sells for quite a bit of money. His NFTs are known for fetching thousands of dollars, but $2 million is a far stretch from his artwork’s average sale price.
So, what’s the big deal?
The big deal is that this particular NFT is history in the making. You see, the Web3 industry as a whole is in its infancy and big brands are just now beginning to hop on the bandwagon. Some believe that this technology has the potential to change how we see the internet and address digital ownership due to the communal validation approach seen on the blockchain.
As more and more large companies begin to dive into the NFT industry, demand for these tokens will be incredibly high. While there will be plenty to go around in the future, there will also only be a small collection of pioneering pieces of art. The first collectibles by big names have the potential to be worth significant amounts of money, far and above what they’re worth today.
Seeing the future of NFTs as a bustling opportunity, it wouldn’t be surprising to see a relatively wealthy collector spend a boatload of cash on the first NFT coupled with a cask full of rare whisky.
The Bottom Line
The bottom line here is simple. NFTs are working their way into nearly every industry, proving to be an attractive option to drive interest in brands, build communities, and more. As a result, big names are diving in and the first edition collectibles from those big names have the potential to be incredibly valuable in the future. The Angel’s Share NFT is just another example of just how valuable these collections can become.