Playboy Accepted Ethereum As NFT Payments And Ended Up losing $5 Million
Playboy, founded by the late Hugh Hefner, announced a staggering impairment loss of $5 million on its Ethereum holdings from last year. The company attributed the loss to the prolonged crypto winter that had a significant impact on the broader market, causing a decline in cryptocurrency prices.
During the pinnacle of the crypto market in October 2021, the company unveiled its “Rabbitar” NFT project. According to TradingView data, Ether, the native coin of Ethereum, has lost over 60% of its value since then.
Playboy Gets Whipped As Ethereum Value Plummets
According to an annual report on Thursday, the media company accepted Ethereum as payment for its Rabbitars NFTs, which were released in 2021 and are held on its balance sheet as digital assets.
“The market price of one Ethereum in our principal market ranged from $964 – $3,813 during the year ended December 31, 2022, but the carrying value of each Ethereum we held at the end of the reporting period reflects the lowest price of one Ethereum quoted on the active exchange at any time since its receipt,” according to the filing.
According to Playboy, the firm accounts for its digital assets as “indefinite-lived intangible assets” that are liable to impairment losses if the assets’ fair value falls below their carrying value at any time.
Even if the fair value of the assets rises after the impairment losses, the company’s impairment losses on digital assets cannot be recovered.
Playboy’s Foray Into Web3
Playboy announced its interest in NFTs back in March 2021, becoming one of the first major companies in the adult entertainment industry to explore the potential of blockchain technology.
The move is seen as a part of its broader strategy to stay relevant and engage with a new generation of fans, while also exploring new revenue streams in the digital age.
Aside from Rabbitars, Playboy has also created NFTs for some of their iconic magazine covers, including the first issue of Playboy from 1953 and the famous 1971 cover featuring actor Burt Reynolds. These NFTs were sold through various NFT marketplaces, such as OpenSea and Rarible.
In addition to these projects, Playboy has launched its own NFT marketplace, which allows artists to showcase and sell their digital artwork as NFTs. The marketplace is built on the blockchain and provides a secure and transparent platform for creators and collectors.
ETH total market cap at $210 billion on the daily chart at TradingView.com.
Playboy has also created NFTs as part of their collaborations with other brands and artists. For example, they teamed up with streetwear brand Supreme for a limited edition NFT drop that featured artwork by Takashi Murakami.
In addition to these projects, Playboy has expressed interest in exploring other Web3 technologies, such as decentralized finance (DeFi) and metaverse development.
Playboy has also allowed Bitcoin payments for its TV offering and Playboy.com.
-Featured image from News.com.au
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