Companies
OnlyFans Buys Ethereum: A Smart Move or a Gamble?
OnlyFans, the popular platform for adult content creators, has diversified its investment portfolio by acquiring a large amount of Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
OnlyFans Increases its ETH Holdings
According to the financial filings submitted to the UK corporate registry, the parent company of OnlyFans, Fenix International, bought nearly $20 million worth of ETH over two years.
Adult content subscription service Onlyfans’ financial report shows that it invested part of its working capital into Ethereum.
Onlyfans purchased $19.889 million worth of ETH. The purchased ETH has a Impairmnent loss of $8.455m as of November 30, 2022, with a Carrying amount… pic.twitter.com/dW1sYQfIkp
— Wu Blockchain (@WuBlockchain) August 27, 2023
The investment in ETH reflects the company’s progressive and innovative approach to technology, as well as its willingness to embrace emerging trends like blockchain and decentralized applications.
However, the investment also comes with risks and challenges, as the cryptocurrency market is notoriously volatile and unpredictable. By the end of November 2022, the value of ETH had dropped by $8.5 million, resulting in an impairment loss on the investment.
Despite this setback, OnlyFans reported impressive financial results for the year ending November 2022, with revenue surpassing the $1 billion mark. The platform attracted over 50 million new users and more than a million content creators, who collectively spent an astounding $5.5 billion on the platform.
Leonid Radvinsky, the Ukrainian entrepreneur who acquired OnlyFans in 2018, has benefited from the platform’s surging popularity, earning dividends of approximately $485 million since the beginning of the previous year.
This is not the first time that OnlyFans has ventured into the crypto space. In early 2022, the platform enabled verified creators to replace their profile pictures with Ethereum-based non-fungible tokens (NFTs), which are unique digital assets that can represent anything from art to celebrities.
In June of the same year, former OnlyFans executives launched Zoop, a celebrity trading card platform that leverages the Ethereum scaling solution Polygon.
The disclosure of Fenix International’s Ethereum holdings coincides with an industry-wide trend, as adult content creators have started to migrate to Friend.tech, a decentralized social media platform that is powered by cryptocurrencies.
This trend shows how crypto’s recent surge has not only captured the attention of financial markets but also influenced sectors far beyond conventional investments.
