Playboy, the iconic men’s magazine, has accepted Ethereum as NFT payments, but the move resulted in a $5 million loss. The brand decided to embrace the popular cryptocurrency trend and allow customers to purchase its digital content using Ethereum. However, the decision proved costly as the market fell, resulting in a significant loss. While Playboy remains committed to embracing innovative technologies, the decision highlights the risks associated with cryptocurrency and the importance of careful investment strategies in this volatile market.
Playboy has reported a loss of $5 million on its Ethereum holdings from the previous year. The company attributes the loss to the prolonged bear market, which caused a decline in cryptocurrency prices. In October 2021, the company unveiled its “Rabbitar” NFT project, but Ether, the native coin of Ethereum, has since lost over 60% of its value. Playboy accepted Ethereum as payment for its Rabbitars NFTs, which were released in 2021 and held on its balance sheet as digital assets. According to the company’s annual report, the fair value of their digital assets can be impaired if the assets’ worth falls below their carrying value. Playboy has launched its own NFT marketplace, collaborated with brands and artists, and expressed interest in exploring other Web3 technologies. Playboy has also allowed Bitcoin payments for its TV offering and Playboy.com.