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Security Token Spotlight: What Is The HCS Whisky Fund?

The introduction of security tokens creates many exciting opportunities for companies and teams. One intriguing concept is the HCS Whisky Fund token or HCS. It has a price of over $1,500, warranting a closer look at what this project embodies exactly. 

The HCS Whisky Fund Concept

HCS Whisky Fund or Howard Cai’s Select Whisky Fund is the first-ever fintech-enabled whiskey fund. But, more importantly, it is the first time users can own a fraction of a whiskey cask. Alcoholic beverages can make for stores of value or potential investments, and whiskey is no exception. However, this is not off-the-shelf alcohol users are investing in.

The HCS Whisky Fund provides exposure to Fine Scottish Whiskey as an asset class. Investors can diversify their portfolios even further through these lower entry barriers by fractionalizing ownership. Moreover, it is possible to invest in a multi-barrel portfolio providing higher liquidity through secondary market trading. Ownership is tokenized on the blockchain through a Digital Asset Token Offering (DATO).

Similar to other high-value investments, HCS Whisky Fund primarily caters to investors with a “buy & hold” mentality. The fund has a stable funding source for the long term. Additionally, it will benefit from Howard Cai’s expertise, as he is the SEA’s leading independent bottler. 

Furthermore, HCS benefits from the Howard Cai Selected brand and its distribution network spanning restaurants, casino hotels, and duty-free shops. The use of blockchain technology introduces transparency regarding the security token and ensures all activity is accountable. As an advisor, Howard Cai will bring his expertise in compliance and integrity to the table. 

A Successful STO And Tokenomics

The team conducted the Security Token Offering (STO) for the HCS Whisky Fund between August 1 and September 30, 2021. The project completed its STO with a 100% completion rating, bringing in $25 million. Participants had to invest at least $70,000 and gain equity in exchange. The token issuing platform is CryptoSX and HCS uses the ERC-20 token standard.

Source: STOMarket

As the first tokenized whiskey fund in Asia, HSC Whisky Fund raises the bar for investing in illiquid assets, such as whiskey barrels. Additionally, the Fund uses a closed-end structure, preventing investors from redeeming or withdrawing their interest from the Fund. HSC Whisky Fund has been established as a segregated portfolio under the SPC company in the Cayman Islands. 

Per STOMarket, HCS Whisky Fund currently maintains a market cap of $39.7 million. That is a near 60% increase from the $25 million raised through the Security Token Offering a few months ago. Moreover, the price per HCX remains near $1,600, confirming a broader interest in gaining exposure to whiskey as an investment. Tokens were sold initially for $1,000. 


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JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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