By
CultX Team
CultX, the fastest growing wine platform globally, is a powerful tool which connects you directly with thousands of other wine collectors and investors. Not only, does CultX enable you to buy and sell wine directly with other users, but it enables buyers and sellers to set their own prices and negotiate directly with each other.
Furthermore, CultX connects every user’s physical, bonded collection of wine through the platform’s unique proprietary inventory management system which digitises user assets. What this means, is that whether you are actively buying or selling, by having your fine wine collection on the platform, you will be notified every time there is a bid or an offer or a trade on a wine that you have in your collection, meaning you never miss a thing.
With transaction fees for buying and selling at 2.5%, buyers and sellers are incentivised to find an attractive price for both parties and, therefore, more likely to match trades.
For buyers, this is a powerful tool that can be utilised to your advantage. Let us explain how you can best use CultX to power your wine collecting and trading game!
When there is a live offer on CultX for a wine, it means there is a user in the ecosystem who is actively looking to sell this wine. Any bid placed on this market will automatically be communicated to the seller(s) of this wine through email and push notification. This live notification system means that a seller will immediately know the level of your bid and can act upon it.
It goes without saying that active markets, with live offers, are your best target for successful trades, as motivated sellers might be willing to accept your bid or counter with a better offer. If you are successful or just choose to buy now at the offer price, then the wine is yours. Physically, it is assigned simultaneously as the transaction occurs. Remember, only wines that physically exist in one of the CultX designated bonded warehouses can be offered for sale. So, settlement is immediate.
When you are on a product page, you will see coloured tags at the top of the page. If a wine you are looking at shows a yellow ‘pill’ saying Community Holdings, then that means that someone on CultX owns this wine, and it exists physically in the inventory management system and, therefore, stored in one of the designated UK bonded warehouses. A bid on this wine will mean that any user who owns this wine will be notified, even if it’s not being offered for sale. This increases the chances/probability of a trade occurring even if there is no active seller.
When looking at a particular wine, always remember to toggle to the ‘order book’ page. Not only does it display all of the active bids and offers across all case sizes on one page, but it also shows the volume of each wine being offered and the different offers that exist.
The more offers that exist and the higher volume of those offers (i.e. quantity being offered for sale) then potentially the more active sellers there are in the market. In the example below it shows that 6 cases of 6x75cl are being offered and 5 cases of 12x75cl are being offered. It is more likely that a sale or a trade will occur, if there are more buyers and sellers in the market, and if you’re looking to get a good deal, it’s more likely to occur if you have more motivated sellers.
As per the screenshot above, the last trade for a wine is detailed in the product page both on the order book level and next to the active bids and offers.
The last trade is helpful as it might give you an indication of the likely price a seller might be willing to accept, especially if the trade occurred recently.
In the example below, the last trade on 7th January at £650 per 6x75cl shows that although the current offer is £685 per 6x75cl, a seller has very recently accepted a bid at £650. This is a good indication of the likely bid level required to execute the trade. The spread % shows the difference between the current best bid and lowest offer, so in this scenario, it suggests that at 20%, a trade is unlikely to happen until the sellers drop their price and the bidders increase their price.
Each wine also has its own liquidity score. This is a ranking based on the availability of this wine in the global market over the long-term, and in context of its peer group and other vintages of the same wine. It can also be thought of as an availability indicator or rarity.
For example, a wine with a low ranking of 1/5 would suggest that it is not often available in the global market, so it is hard to find/source, making it rarer and less available. Wine with a higher rating of 5/5, are often easily accessible or always being offered in the market.
Thinking from a pure ‘availability’ context, if you are bidding on a wine which is 5/5 and is a community holding, it might increase your chances of executing a trade, as it would suggest that this is a wine many users own, and so there could be more potential sellers of this wine in the market than others.
If there is an active bid and offer, we show the % spread between these two prices. This is now searchable using the filter on active markets. Simply go to discover, and on the active markets table on the right-hand side, click on the sort icon and choose ‘spread: narrowest’. This will sort the results from the narrowest spread in ascending order.
If you are using CultX to invest in wine, build a collection or trying to snap up a great bargain, it helps to leverage the tools at your disposal to increase the likelihood of success of your bids.
In theory, a bid that is close to the last trade, for a wine with an active offer, that’s part of the community holdings, which has a high volume of offers, and high liquidity ranking, has the highest likelihood of trading. Happy hunting!
*Prices and trading data used in this article are for illustrative purposes only and may not reflect the current values for this wine. Past performance is not indicative of future success; the performance was calculated in GBP and will vary in other currencies. Any investment involves risk of partial or full loss of capital.
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