SpankChain is an Ethereum-based blockchain targeted at helping adult content creators remove third-party intermediaries like conventional banks, which have had a notorious history of conflict with the adult industry.
Ethereum-based adult entertainment platform SpankChain is closing its crypto payment processor SpankPay, losing its payment service provider Wyre, in February while being unable to find a new provider.
In February, SpankPay disclosed that its former provider had ended its agreement to offer crypto payment services to SpankPay, citing “violations of any third-party payment processor or network mandates”.
SpankPay claimed that this was a “targeted shutdown” by Wyre as their new payment processor wouldn’t perform with the adult enterprise. The firm mentioned problems in acquiring banking relationships as the primary reason for shut down. In a statement by SpankPay’s CEO, the company was pressed to tolerate constant uncertainty and delays in its endeavors to safeguard banking activities.
SpankPay was established in 2018 as a payment service for the adult entertainment space. The firm enabled customers to make payments and donations leveraging several cryptocurrencies comprising Bitcoin and Ethereum. Even with the fame of a company like SpankPay, it was unable to tackle the problems in banking ecosystems. The firm’s shutdown emphasized the persisting problems encountered by cryptocurrency firms in ensuring dedicated banking services.
SpankPay claims that the endeavors to look for another service provider failed as no one wanted to pair up with a company in the adult space. SpankPay, in a Twitter post, said that the company was functioning in an uncomfortable environment, but the increasing issues made it very difficult for the company to work with a relatively small team and niche audience.
SpankChain is an Ethereum-based blockchain targeted at helping adult content creators remove third-party intermediaries like conventional banks, which have had a notorious history of conflict with the adult industry. The shutdown of SpankPay is a massive setback for the adult entertainment industry. It also acts as a warning for alternate crypto firms who have to look for banking services in a difficult ecosystem to survive.
In the future, cryptocurrency firms will look for associations with banks and financial establishments to make sure that convenient and trustworthy banking services are in use. However, one is not sure whether the collaborations will be genuine, provided the persisting troubles encountered by the crypto firms in protecting banking relationships.
Nonetheless, the shutdown of SpankPay brings up the issue of advocacy and education on behalf of the cryptocurrency industry. Solely by functioning together can the space aspire to skip the hurdles created by the banking system and create a more thriving and sustainable ecosystem for crypto payments.
However, even though the shutdown comes as a shock to some, the firm has assured that the user’s money is safe.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.