SpankPay Loses Out As Adult Industry Connection Causes Wyre Payments To Back Out
- SpankPay, an adult industry crypto payment service, shuts down after its payment processor, Wyre Payments, terminates their agreement.
- The adult industry has a history of conflict with traditional financial systems, often turning to cryptocurrencies for solutions.
- SpankPay team plans to focus on changing legislative issues and promoting crypto use in the adult industry.
The Adult Industry, Blockchain, and Cryptocurrency: Challenges and Opportunities
The adult entertainment industry has always faced challenges and pushback from traditional financial systems, often forcing businesses and content creators to seek alternative solutions. One such alternative has been the adoption of cryptocurrencies and blockchain technology to facilitate payments and maintain privacy. However, as the recent shutdown of SpankPay, an adult-themed crypto payment service, shows, the road to integrating these technologies into the adult industry is not without its hurdles.
SpankPay announced on March 20, 2023, that it would shut down after its upstream payment processor, Wyre Payments, terminated its agreement with the company, citing “violations of any third-party payment processor or network rules”1. SpankPay claimed that its contract was singled out, and that Wyre’s new payment processor, Checkout.com, did not work with adult businesses1.
Launched in August 2019 by Spankchain, an adult industry blockchain, SpankPay aimed to provide a “safe haven” for the community, enabling fans to pay for adult content instantly and discreetly using Bitcoin, Ethereum, Litecoin, and Monero1. The service later expanded to include other coins1.
The adult industry’s conflict with traditional financial systems has led businesses and individuals to turn to cryptocurrencies for solutions. For instance, in December 2020, adult website Pornhub began accepting cryptocurrencies after Visa and Mastercard blocked customers from using their credit cards to pay for its premium service1. This decision came after the website faced scrutiny for hosting videos depicting child pornography and sexual assault1.
Despite the challenges faced by SpankPay, the team remains committed to promoting the use of cryptocurrencies and blockchain technology in the adult industry. They plan to focus on changing the legislative problems that cause issues in the industry and educating sex workers on how to use cryptocurrencies1.
However, integrating cryptocurrencies and blockchain technology into the adult industry does not come without challenges. One significant issue is the volatility of cryptocurrencies, which can cause fluctuations in the value of payments received by content creators and platforms. Additionally, the lack of regulation and oversight in the cryptocurrency space raises concerns about money laundering, tax evasion, and other illicit activities.
Some Opportunities still apparent
On the other hand, the use of cryptocurrencies and blockchain technology in the adult industry also presents several opportunities. Blockchain technology can provide increased privacy, security, and transparency, protecting both content creators and consumers. Furthermore, cryptocurrencies can enable instant, global payments with lower fees compared to traditional payment methods.
As the adult industry continues to face challenges from traditional financial systems, the adoption of cryptocurrencies and blockchain technology becomes increasingly important. Despite setbacks like the closure of SpankPay, the industry must continue to explore innovative solutions and push for legislative changes that support the integration of these emerging technologies.
In light of the obstacles faced by the adult industry, it is essential for businesses and content creators to work together to overcome the challenges and take advantage of the opportunities offered by blockchain technology and cryptocurrencies.
One potential avenue for growth and collaboration in the adult industry is the development of decentralized platforms that facilitate content distribution, payments, and interactions between creators and consumers. These platforms can leverage the unique features of blockchain technology, such as smart contracts, to automate transactions and ensure fair compensation for content creators. Furthermore, decentralized platforms can provide a higher level of privacy and security for users, protecting sensitive data from potential breaches or misuse.
Another promising development in the intersection of adult entertainment and blockchain technology is the implementation of non-fungible tokens (NFTs). NFTs can be utilized in the adult industry to create unique, collectible digital assets, such as images, videos, or even virtual experiences. By leveraging NFTs, content creators can generate new revenue streams and offer exclusive content to their fans. Moreover, NFTs can be easily traded and sold on various marketplaces, providing additional liquidity and value for content creators and collectors alike.
The adult industry should also focus on fostering greater collaboration between businesses, content creators, and technology developers. Building partnerships can help drive innovation and create new opportunities in the space. For example, adult entertainment companies can work with blockchain and cryptocurrency experts to develop new tools and services that cater to the unique needs of the industry. These collaborations can lead to the creation of new platforms, payment solutions, and other technologies that improve the overall experience for users and content creators.
The adult industry has a lot to gain from the adoption of blockchain technology and cryptocurrencies. Despite the challenges faced by companies like SpankPay, the potential for growth and innovation remains strong. By focusing on developing new solutions, promoting legislative change, and fostering collaboration, the adult industry can overcome the hurdles it faces and fully harness the power of these emerging technologies.