Adult Industry Based Cryptocurrencies Doomed To Fail

I've been meaning to write this post for some time now. Ever since I reviewed Bunny Token as the shit coin of the week and the Verge announcement I covered previously i've been thinking aren't all these horses in a race to nowhere? I'm begining to think so and here's why.

Adult industry based shitcoins are on the road to extiction

The adult industry embraced tech before

Since the mid-2000’s, the sex industry has turned into one of the most profitable markets in the world. To put things into perspective, the porn industry currently rakes in a staggering US$97 billion annually, which is more money than the MLB, NBA, and NFL combined. The internet and its ever expanding teach and constant lowering of barrier to entry has made access to adult content easier than ever and while this does sound like a lucrative industry to be in lets look at the numbers in perspective.

Let's put those numbers in context

Firstly the vast majority of adult content consumers are consuming free content with their being no shortage of shits offering free unrestricted access and living off the ad revenue model while the adoption of premium or paid subscribtions remarkably low across any industry in the world. The majority of people simply do not consume pornography like its netflix, for most pornhub and chill is not a thing.

Secondly when these shit coins run off with that 97 billion dollar stat they fail to take into account the fact that that includes things like online dating subscriptions, physical goods sales and of course access to live stream camming services. Yes thats right the actual paid subscriptions is a small fraction of the that large figure and don't let them fool you. Yes by all means a few billion is a large amount of money but for it to sustain a ecosystem like a coin its simply not going to hack it.

Blockchain penatration

Sorry, I simpy could not help myself with that headline. Blockchain is being peddled into every and any industry it can it its hands on and the sex industry is no different. People are banking on how the internet and social media has helped the adult industry to repeat itself with blockchain and now the sex industry is experiencing a makeover with many content creators now favoring a decentralized business model to distribute their videos, films, pictures, etc.

So you're validating you're concept by asking every no name adult film star is being asked for a testimonial on why they like money, hmmm no brainer hey.

Problems faced by the adult industry

The argument for blockchain in the adult industry is that with there being so much free pornography available on the internet today, it is very difficult for many adult content providers to earn money for their creations. In addition, the issue of piracy is heavily prevalent within this domain, as most adult material tends to get duplicated and make the rounds on various websites quite quickly.

Since 2017, there were more than a dozen coin offerings that were aimed directly at this segment. These platforms are designed to promote high-quality content access using cryptocurrencies, thereby eliminating issues of piracy, unfair revenue distribution, duplicated content and so on.

My arguement to this is yes you may have licence over your image but come on you're not creating revlutionary new content, this isn't a thinking persons game. It's just the same thing each year with new faces so seriously, you've saturated the market and there is an oversupply of content, so is that really something blockchain can fix?

I personally do not think so and even with cryptographic encrypted content access via Smart contracts may earn a few stars at the top some direct sales due to their mass appeal the overall industry is not going to benefit from this model.

How can blockchain benefit the adult market?

The next set of arugments for a adult based cryptocurrency is the following:

Faster Payments: when using blockchain platforms, it is much easier to make payments for audio/visual content. Since everything is governed by smart contracts, alt-assets make content distribution highly efficient.

Streamlined Access: crypto technology provides users with a surefire avenue for uninterrupted content access without having to rely on preexisting hosting services.

Safety: as you may know, credit card theft is extremely common when using adult websites. Thus, by implementing blockchain technology within the online adult market, users can be sure that they are paying the correct amount of money at all times. Also, since all contracts are well-defined in advance, no hidden costs are incurred at a later stage.

Better Content Delivery: the online sex market is full of duplicated content which makes it hard to find new material. However, with blockchain technology, it will become harder to steal content from websites since only users who have purchased the required number of tokens are granted access to a particular audio/video file.

There are currencies available that can do this and do it better Monero, ZCash and Verge to name a few. These coins also have a larger market cap, more trade volumes, more use cases and relative stablity compared to some single industry coin. If you're coin is going after 1 market and lets say it gets 1% of this 97 billion dollar market, thats 9.7 billion marketcap and if we look at coins in this market

• Spankchain - 1,000,000,000
• Vice Token - 4,000,000,000

You can see that there is a large supply making it 1 primed for volitility as money flows in and out of the ecosystem and two not an attractive investment for investors making it soley relaibale on the actual use to drive value which is not a good sign for any cryptocurrency.

Sex-Themed Cryptocurrencies

One of the earliest crypto players to enter the adult industry, PronCoin offers its users a disruptive technology that was developed to regulate the way adult content is distributed online.

The core team behind this project has over two decades’ worth of experience in this industry and has created a system that can potentially restructure the online porn market through the use of digital assets.

Additionally, PronCoin has partnered with some of the biggest names in the porn industry including:

• AVN – one of the largest adult news magazines in the world today.
• XBIZ – an American publisher of news and business information for the sex industry.
  When interviewed about their partnership with PronCoin, Zoran Rehar, the CEO of PronCoin, had the following to say:

Bunny Token

Bunny Token is a blockchain powered payment system, which facilitates all types of adult businesses a safe and reliable payment solution. The ecosystem guarantees safety and reduces rejections that people working in adult industry have to face when they want to make any financial transactions or open a new bank account.

To make financial transactions easy and to get rid of the conventional payment methods, the company introduces its Bunny token, which makes all financial transactions possible for business related to the adult industry.

With the introduction of its Ethereum based Bunny Token, the company not only wishes for its token to become one of the leading cryptocurrency, but it also wants to replace fiat currencies with its own cryptocurrency in the multi-billion dollar adult industry.

Spankchain

Spankchain is a blockchain-based platform designed to tackle most of the core issues faced by the adult industry today. It utilizes a decentralized foundation to get rid of middlemen, who more often than not end up receiving the lion’s share of the content revenue.

Additionally, this platform utilizes a governance model that redistributes financial earnings equally among all participants — creators, performers, and fans.

Porn X

The PORN X platform is designed to serve as a payment service providing users with a vast array of pornographic resources along with a digitized payment protocol. It is compatible with any paid service that utilizes a decentralized blockchain.

Not only does the platform use a native token to facilitate internal transactions, but it also provides users with a mobile app that facilitates purchases via QR codes. The app is available for both iOS and Android users and can be used with over 15 of the top crypto assets that are in circulation today.

Lastly, to further increase platform usability, PORN X comes with a plug-in module that allows for instant and efficient crypto payments.

OKOIN

OKOIN is an adult content platform that combines the world of porn with that of Virtual Reality (VR). Since the service is completely decentralized, it is able to ensure complete privacy for all of its customers.

As we speak, OKOIN already has more than 500 VR videos on offer for its users. However, the one downside is that the content can only be viewed via the company’s AV module which can be restrictive sometimes.

It is also important to mention that OKOIN has a solid customer base of more than 900,000 users.

Vice Token

The Vice Industry Token represents a change in the broadcast and on-demand video entertainment industry. It functions as two things; a video entertainment platform where viewers can watch videos, and as a cryptocurrency where anybody who participates (in viewing, adding, or curating content) will get paid with VIT's proprietary cryptocurrency.

VIT aims to solve a problem the adult film industry has long grappled with: It's difficult to make people pay for porn, thanks to the proliferation of free sites lurking on the internet. That's a problem exacerbated by users with ad blockers, or who simply click away from ads, hurting ad revenue.

VIT is a rethink of how free porn is monetized, but it's reliant on users willing to give away their data. You're doing that anyway when you sign up for social networks or use apps which sell your information to third parties.

The company already has signed more than a dozen partners, including Penthouse, where earned VIT can apparently be used to purchase premium content.

RedBux

RedBux is a crypto-driven platform that aims to revolutionize the adult entertainment market by amalgamating content from companies like Wicked Pictures and IWantEmpire to provide users with a library of content that is vast and extensive.

In terms of its functionality, this platform is safe, secure and boasts an architectural framework that has more than six thousand different points for payment.

Asspace

Asspace is an adult social network application that allows individuals of a liberal mindset to interact with one another so as to create a wide array of sexual content such as videos and films.

Additionally, this decentralized network is useful for creating as well as viewing adult content. It comes packed with features that have the potential to disrupt traditional sex content channels so that high-quality material is distributed in a more fair and regulated manner.

A bunch of generic claims

As you can tell from the various descriptions of the coin they offer nothing new to the industry that cannot be done by coins we already have, there is no real tech behind it and the majority are simple ERC-20 shitokens that I could make in 15 minutes. If you dive deeper into the projects as i've done, read the whitepapers you'll see there is no technical innovation that sets them apart from each other let alone from multi-use currencies.

Final Thoughts

With blockchain seeping into nearly every area of our daily existence it's natural for tech companies to to cash in on the hype. Buy the hype sell the news, am I right? Personally I don't think one so called decentralised currency for the adult industry will be a hit in any way shape or form, even if it is able to to negotiate inot becoming the sole provider of cryptocurrency payments for all websites. It would need adoption from the sex eCommerce industry as well as the dating and live streaming side of the business in order to become remotely viable which in a fragmented market like this is highly inlikely if not impossible.

Also the whole privacy of crypto is nonsense if im buying a adult based coin it will be recorded on the blockchain based on my wallet adress I used to exchange the coin for and anyone could see what sort of things i'm going to purchase since I'm using that specfic coin. If for example i'm using Monero it's anybodies guess and the anonimity remains.

Blockchain in its current form also does not support subscription based payments which is basically what all these coins are after and even with a smart contract there needs to be user autherisation and with it comes the opportunity to cancel easier and quicker than ever before making subscriptions less likely to continue as they would with a credit card.

It is also worth noting that Verge did strike up partnerships with the largest adult service provide in PornHub as well as AdJunky the adult verison of Adsense and its done zero to improve the appeal or the value of the currency so what makes these coins think they'll fair any differently.

This is why I feel these projects are doomed to fail and I urge you to stay clear from investing.

Where a cryptocurrency could prosper

While i've shut down the idea of a adult based cryptocurrency I do feel there is a space for a similar project in something like STEEM (which is being worked on by the dPorn platform mind you) or a general content based blockchain where adult stars, cammers, eCommerce players can get away from using centralised services and host and manage their own content as an independent content creator similiar to the way influencers have used social media. Building their own brand, their own audience and monetizing it based on their marketing and popularity.

This will also help create an open market for this type of content where users can consumer free and peer to peer agreed prices instead of prices set by a centralised site like pornhub who are looking to cover their overheads and generate a large profit for themselves and shareholders.

This also gives performers freedom, privacy and the safety to create if and when they want and not based on the contractual obligations of their publisher.

Have your say

What do you think of adult industry specific coins? Is there a space for it? Is it just a desperate attempt by developers to use the novelty of blockchain and the appeal of porn to make a quick buck or is their merit in this?

Drop me a comment and let me know what you think, SteemFam!

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Source:

• Cointelegraph