ICO Analysis: CWEX

Investing in fine wine is a very attractive proposition. However, if you don’t know what you’re doing, it’s risky business. When acquiring wine over the internet, collectors have to deal with high fees, counterfeit bottles, border taxation, regulations, and insurance. And then if their bottle arrives in one piece, they have to worry about storing it properly. CWEX is using the skills of the blockchain to help investors cut down, even eliminate, most of these costs.

“We provide fine wine vendors and cryptocurrency owners with the possibility to trade together for the first time in a live market environment on a truly global scale.”

Based on EOS, CWEX is creating a fine wine trading platform, and onboarding trusted partners and vendors. Every rare wine bottle offered for trading is provided with a unique certificate of authenticity issued on the blockchain. This certificate provides a buyer with an “unambiguous identification of his investment.”

Crypto holders that want to invest in wine, can trade it on CWEX platform without ever holding the bottle and worrying about insurance/storage. CWEX will store it for them in their Swiss-based facility. And all they need to trade with is their certificate.

The trading platform is managed by two separate entities; DotChain GmbH and Crypto Wine Exchange (CWEX).

DotChain GmbH (Switzerland) ensures the contractual validity of the fine wine products, trade accountability, and product authenticity.

Crypto Wine Exchange (Hong Kong) is the blockchain based marketplace.

Here’s how it works:

  1. Registered traders place a bid or offer on selected fine wine.
  2. Once offer is matched the trader is notified.
  3. CWEX, in partnership with DotChain GmbH, secures the asset, meets all the compliance requirements and insures your asset.
  4. A blockchain based ownership certificate is transferred to the buyer. it guarantees the bottle’s authenticity and the investment value.
  5. As the certificate owner, you have three options; 1) your ownership certification can be traded on the platform. 2) its held for the price appreciation. or 3) have your wine delivered to your house.

Token

CWEX is the native Crypto Wine Exchange token. It is built on EOS for unmatched TPS, scalability, no fees, multiple wallets, and intuitive smart contract programming.

The main benefit of CWEX token is that it reduces trading fees. The system gives discounts of deductible fees automatically on the condition of having enough CWEX in your account.

Distribution:

  • 62% Crowdsale
  • 12% Community growth
  • 14% Team
  • 3% Bounty
  • 5% Legal
  • 4% Future stakeholder

Allocation

  • 25% Global partner and vendor management
  • 25% CWEX platform development
  • 25% Market compliance management
  • 25% Expansion and operations

Team

From Switzerland, this impressive team has 5 founders.

Jacob Manuel Kallupurackal – Co-Founder/CEO. He has worked for Cisco since 2015 as a Global Training Program Manager.

Maxim Andersen – Co-Founder/Blockchain Expert. 5 years as a Beam Instrumentation Specialist for CERN. Over 2 years as Software Engineer at CISCO.

Thomas Tsang – Co-Founder/Project Manager. 3 years as Remote Participation Analyst for the United Nations Telecommunications Union.

Nadir Zemrani – Co-Founder/Finance Manager. Master of Business from Swiss Management School in 2017.

Stephen Gonah – Co-Founder/Compliance Expert. Spent 14 years in different Officer roles for UNHCR, the UN Refugee Agency.

David Guye – Partner Relations Manager. Huge wine expert.

Their current Advisory Board has 4 members. 3 of them look impressive with experience at JP Morgan, UN Food Program, HSBC, and Schroders.

Verdict

Despite being a risky and challenging investment, if it turns out fine wine, it can be quite profitable. According to wineinvestment.com, “the fine wine market has consistently delivered a positive absolute return over any 5-year return. More importantly, of the total 57 Five-Year periods that we covered (2008-2018), only 9 periods experienced negative returns.”

Risks

  • The token use case isn’t very exciting. It looks like most of its purpose is to save on trading fees. -1
  • The community is small. 300+ Twitter, 100 viewers of their ad video, 4,000 Telegram (bounty chasers). -1
  • 5 co-founders is a lot of chefs in the kitchen. -1

Growth Potential

  • As stated above, wine has consistently delivered positive returns to investors. When traders start making even better returns thanks to CWEX, and word gets out, it will ramp up the entire market. +3
  • On Crypto Wine Exchange, you can trade in CWEX/EOS/BTC/ETH/NEO/USDT. +2
  • The team is high grade. +3
  • There are a lot of wine collectors/investors out there. +2

Disposition

Cool concept. Great looking team. Very possible this project ages like a fine wine. 7/10

Investment Details

  • Symbol: CWEX
  • Platform: EOS
  • Total Supply: 89 million
  • Amount for Sale: 55 million (62%)
  • Price: $0.20
  • Presale: Dec 15 – Jan 9th (20% bonus)
  • Public Sale: Jan 10- March 31
  • Hardcap: $10 million
  • Softcap: $1 million
  • Website:  https://cwinex.io/
  • Telegramhttps://t.me/cwexio

All unsold tokens will be burned

Featured image courtesy of Shutterstock. 

Author:
Joshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!

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