NSFW on a Blockchain

NSFW on a Blockchain

Aug 16, 2018

Pornography was the killer app Web 1.0 and now it has its tawdry reputation and not-safe-for-work (NSFW) content to the ICO world many real blockchain use cases. This article weeds out the scams from the true players to present a landscape of today’s adult entertainment industry tokens.

A table of 16 ICOs and projects can be found at the end of the article.

Industry protocols, privacy coins, rewards, crypto-collectibles, snake-oil scams. It seems like every legal aspect of the adult entertainment industry has multiple blockchain plays, with brick-and-mortar stores and established brands all getting into the action. The key use case is facilitation of payments that are both secure and private. This is necessary because as a SpankChain blog post reads:

“[Payment companies] have systematically denied service and redlined the adult entertainment industry. They have routinely closed accounts of small businesses, artists and independent contractors whose business happens to be in the sex industry.”

Paypal and Square are just two popular services with policies that prevent their services from being used to buy legal services from the adult entertainment industry. Furthermore, and more on the borderline of legality, in 2015 when Visa and Mastercard stopped their services from being used to pay for personal ads on Backpage, a site that had been used by sex workers. See Love, Sex, Bitcoins: The Rise of Blockchain in the Adult Industry for more information.

Many cryptocurrencies have been created for the adult entertainment industry, but there is little proof that these are legitimate or widely used. Although we don’t want to give sh-t coins credence, Strategic Coin did identify at least four adult industry-focused coins that are trading on an exchange but have little to no volume. However, there is hope as a new wave of tokens like Wankcoin and Eroiy completed ICOs recently. Another approach is to use a non-industry specific privacy coin like Monero to facilitate trade. For example, the industry-leading website Pornhub now accepts cryptocurrency such as ZenCash and Verge.

Two successful ICOs are working on payment systems. In May 2018, BunnyToken’s ICO raised 8.5 million USD to build blockhain-based payment solution. Intimate raised sign 9.5 million USD in its June ICO. A pseudonymous reputation framework for decentralized markets, intimate’s solution is the closest we’ve seen to an attempt to create an industry-wide blockchain protocol

Another model is to create a token to be used within a closed ecosystem. SpankChain is the most prominent example of this approach and currently has a market capitalization of over 13 million USD. Several other tokens claim to facilitate payments between live streaming entertainers and clientele. There are also “gentleman’s clubs” and adult resorts that have created tokens, but these appear to be more of a gimmick as opposed to a real tokenized economy.

This article would be incomplete if it didn’t cover crypto’s use by sex workers, whether they are a model, camgirl, escort or prostitute. Coindesk’s Leigh Cuen is one of the leading experts on the topic. She believes that sex workers are already using bitcoin for transactions as well as a store of value to save towards retirement. Last year, Cuen wrote about an app that claims to be the “Uber for escorts”. Since then, several other solutions have been created that provide useful blockchain enabled functionality for sex workers and its customers. For example, LOVR Network is a tool to book appointments with sex workers that will use blockchain to store information about health certificates and enforce KYC compliance. This European focused project is expected to complete its ICO at the end of the month.

Adult Industry ICOs & Blockhain Projects

Company or ProjectDescription
Adult Entertainment TokenThis Netherlands-based project's public ICO is planned for September 2018. Focused on live-streaming, it does not appear to have a real need for tokens or blockchain.
Adult ChainA blockchain-based rewards platform for the adult entertainment industry to monetize content. It is trading on Cryptopia.
Animation Vision CashAn interactive adult content trading platform. Its AVH coin is tradable on CoinTiger.
BunnyTokenBunnyToken is building a blockhain-based payment solution for the adult industry. Its May 2018 ICO raised 8.5 million USD.
EroiyA NEM blockchain-based cryptocurrency designed for incognito payments in the adult entertainment industry. Its ICO was completed but no information is available about how much it raised.
ExtraLoversAn adult-only, private and anonymous advertising and commerce platform. It provides screening, booking, and payment services via a smart contract escrow payment and an automated order management system. Its ICO is upcoming.
IntimateA pseudonymous reputation framework for decentralized markets. Intimate enables safe transactions in a permissionless environment via trustless two-party escrow, and enables pseudonymous users to check a counterparty's reputation before entering into a transaction. Its June 2018 ICO raised 9.5 million USD and it is not yet trading on an exchange.
KenCoinAn industry-specific cryptocurrency, targeting the adult entertainment sector. It want to be a standard currency for anonymous, safe transactions in sex and dating-related purchases. The ICO closed a year ago but it is not trading on an exchange.
Live StarsA webcam platform for the online adult entertainment industry that is using blockchain technology. As of August 15, 2018, its marketcap is 600 thousand USD.
LOVR NetworkThis appears to be an European focused tool to book appointments with sex workers. Lovr expects to use blockchain to store information about health certificates and KYC compliance. Its ICO is expected to end at the end of August 2018.
OKOThe first decentralized VR platform for distributing adult films and organizing online video chats in a virtual reality format.
redBUXA token to be used in the company's virtual reality product, vrXcity. Its ICO was completed but no more information in available.
SpankChainSpankChain is a multi-token model designed to abstract away ecosystem-wide coordination processes from mechanisms which meter platform usage rights. SPANK is a staking token which can be utilized to mint alternative tokens offering specific payment and governance rights throughout the SpankChain ecosystem. BOOTY is another token that incents stakeholders to lock-up their investments in the ecosystems. SpankChain has expanded into crytpo-collectibles with its CryptoTitties offering. As of August 15, 2018, its marketcap is 13.2 million. USD.
Vice Industry Token (VIT)VIT claims to pay users with its tokens for watching porn. In essences, it allows owners of content to tokenize it, allowing a transition of clientele from free to paid services with loyalty incentives. Playboy has provided it some support. As of August 15, 2018, its marketcap is 1.5 million USD. Update: Playboy is now suing the company behind VIT.
VogoVA decentralized interactive adult film studio located in Los Angeles comprising. The platform allows users to both vote on the production of adult videos. The OGO coin is the service-use token of VogoV. It is currently raising money via a private sale.
WankcoinA digital currency for purchasing adult items and services in situations where other payment options are either not available, or not ideal. Its ICO was completed in August 2018.

 

Featured Image: NSFW Koszulka by Danny Beers