Caskcoin, touted as the first cryptocurrency in the world backed by whisky, was launched on March 12 by the head of the North of Scotland Distilling Company, Ricky Christie. The digital currency is the first of its kind that is backed by a solid asset investment via a maturing Scotch Whisky. One Caskcoin is equivalent to a physical ownership of an actual share in each maturing whiskey cask. The portfolio, which covers old and rare malts aged anywhere from 21 to 50 years, has an estimated value of £40 million. The casks come from the world’s Scotch whisky distilleries and includes Bowmore, Dalmore, Macallan, and Glelivet. A buyer who purchases a single coin will be given a share of each cask. More coins purchased is equivalent to more whisky owned.
According to Barry Millar, the CFO of Caskcoin, Caskcoin is backed by three sturdy pillars: traceability, provenance, and sharing intelligence. Each digital Caskcoin is backed by the blockchain technology thus is easily traceable. The uniqueness of the casks as well as their authentic origins is heavily tied to the well-founded Scotch whisky industry. Sharing intelligence is where owners of Caskcoin are allowed to vote on the time casks will be bottled and sold.
Millar added that pinning a cryptocurrency to the maturity of Scotch Whisky stocks was largely the result of ideas thrown between him and Christie – the founder of Caskcoin. Millar believed that their digital currency would have more stability if its value echoes the Scotch whiskey stock and that holders of the Caskcoin need to easily participate in the digital currency’s “journey”.
As much as £40 million is expected to be raised in the Initial Coin Offering set by Caskcoin anytime from March 12 to 30. The number of ERX-20 tokens that will be available are 6.5 million at £8.15 each. The minimum investment amount is set at £30,000 payable in ether or bitcoin.