OnlyFans’ porn ban is the once-in-a-lifetime opportunity for crypto – TechCrunch



Today OnlyFans dropped the massive bombshell that « sexually explicit content » will be banned from the app in the course of this year. This is obviously an extremely seismic shift for OnlyFans that completely turned the adult content industry on its head and opened up a path to greater independence for performers by allowing them to connect directly to their fans through subscriptions. That shutdown is also the chance of a lifetime for the crypto industry, which could capitalize on the shutdown and a recent wave of increasingly consumer-friendly crypto payment infrastructure products to create a platform that won’t collapse under the influence of payment providers.

OnlyFans, who tried to upgrade to a unicorn rating and got into big trouble despite huge revenues, didn’t mince the rationale for today’s fundamental change. « These changes should correspond to the wishes of our banking partners and payout providers », a Statement on the news from OnlyFans partially read.

Despite the ongoing destigmatization of sex work and adult content by pop culture, banking institutions are still fundamentally conservative and cautious with the flow of money through these platforms. Most operators of these platforms have to deal with the constant unease that one day their platforms could lose the favor of these providers and immediately lose everything. Meanwhile, “vice clauses” in many venture capital firms keep them from operating in these areas and prevent these platforms from accessing growth capital. It is clear that adult content platforms are likely to never have a friendly relationship with these financial institutions, and it is probably time that the platforms – and the creators who use them – move on.

In many ways, the dumping of porn by OnlyFans seems like an open betrayal of their network of creators, and these creators are sure to remember it for adopting the imitators who follow them. You will likely view new platforms with renewed skepticism about how to deal with payment providers, but for ambitious platforms looking to grow, there is likely to be no different outcome. That would probably be a different situation for crypto-native platforms, but given the low level of adoption, it’s still a significant risk for developers to use a platform where their fans may not know how to pay for content.

The porn industry has embraced crypto payments, albeit slowly. In 2018, Pornhub first announced that it would accept payments in cryptocurrency. Fast forward to 2020 when Visa and Mastercard discontinued the platform; now, crypto payments and ACH bank transfers are the only payment options for its premium subscription service. There are quite a few crypto platform players in this space already, like CumRocket and SpankChain, serving a niche audience (and likely in need of rebranding), but with the OnlyFans juggernaut out of the way, there could actually be a place for an existing one or give emerging players to conquer and conquer this market.

The real challenge is making it easy to onboard new users for both a new platform and possibly their first crypto wallet – while complying with regulatory guidelines – at a time when more conventional web payment structures have become so streamlined and free content Just for adults are as fruitful as ever. Knowing your client’s guidelines (KYC) getting users to upload their passport or driver’s license to review crypto purchases are probably not the easiest onboarding requests for a new crypto porn site, but as the market has one becomes less mature and the challenges of hiring their first wallet are decoupled from the onboarding process for the platform, there are many advantages to be realized.

Porn has always been a kind of launch pad for new technologies. While the popularity of crypto has risen in recent months, dwarfing total assets of nearly $ 2 trillion, crypto penetration remains extremely low in the apps people actually use. As new solutions and startups emerge aimed at demystifying the buying and shipping of crypto, chances are the industry is in the perfect place to fill the void left by OnlyFans’ exit and to build a more innovative platform that suits their image, that carries everything -in on crypto.

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