Home » news » playboy enterprises loses 4 9 million on its ethereum based nft project

Playboy Enterprises loses $4.9 million on its Ethereum-based NFT project

Playboy Enterprises has lost around $4.9 million on its Ethereum-based NFT project. The company losses could be attributed to the plummeting value of Ethereum. Playboy’s entry into the crypto industry was hailed as a bold and innovative move by the company, but the project has not achieved the success that the company envisioned.

Playboy loses $4.9M on Ethereum-based NFT project

Playboy Enterprises is the parent company of one of the largest adult entertainment brands globally. The company launched an Ethereum-based NFT project with a $4.9 million loss.

The projects launched by the company had two distinct offerings: Rabbitars and Liquid Summer. The Rabbitars offering is a collection with 11,953 NFTs featuring the Playboy bunny. The other is Liquid Summer, a collection featuring photographs of a Playboy model, Lenna Sjooblom.

The two projects were released in 2021 and were part of the company’s venture into the cryptocurrency sector. However, it was not the first time that Playboy interacted with crypto assets because, in 2018, the company started accepting BTC payments for adult content.

The company started exploring crypto offerings to keep up with the emerging trends in the adult entertainment sector. However, this initiative has not reported much progress. The company reported a nearly $5 million loss because of the drop in ETH’s value.

Playboy’s crypto project

Playboy’s crypto projects launched when volatility in crypto assets was high. Since the project launched, the value of Ether has dropped by around 60%. The plunge in ETH has affected the value of Playboy NFTs. The value of these NFTs in ETH has dropped from $1.75 million to around $327,000.

Playboy joins other companies that have reported significant losses in their crypto projects because of the apparent volatility in this industry. The scandals that engulfed the crypto market last year, such as the downfall of FTX, Celsius, Terra, Voyager, and more, triggered a notable drop in the value of digital assets.

The crypto market peaked at over $3 trillion in November 2021 but lost more than $2 trillion of value by the end of 2022. The companies that invested in crypto offerings are feeling the effects as prices continue to plummet.

Despite the price decline, Playboy has not fully given up on its NFT offerings. The company has expanded the offerings for the Rabbitars collection to support usable avatars within The Sandbox metaverse. The Sandbox metaverse is a Web3 game allowing users to create virtual worlds, socialize and play mini-games.

Playboy has remained optimistic about the cryptocurrency sector and the industry’s future. While the company is still interested in the sector, whether it will have more crypto offerings remains to be seen. Moreover, there are concerns about whether the next Playboy initiative will succeed more than the previous initiatives. The crypto market has reported a significant recovery this year, a positive move for crypto projects.

Ali Raza

Leave a Reply

Your email address will not be published. Required fields are marked *