Playboy, which was founded by the late Hugh Hefner, announced a staggering loss of $5 million in Ethereum holdings since last year. The company attributed the loss to a prolonged crypto season that had a significant impact on the broader market, leading to a drop in the price of cryptocurrencies.
During the peak of the crypto market in October 2021, the company launched the NFT project “Rabbitar”. According to TradingView data, Ether, Ethereum’s original coin, has lost more than 60% of its value since then.
Playboy Whipped As Ethereum Value Drops
According to the annual report, the media company received Ethereum as payment for its Rabbit NFTwhich is released in 2021 and held on the balance sheet as a digital asset.
“The market price of one Ethereum on our main market ranged from $964 – $3,813 during the year ending December 31, 2022, but the carrying value of each Ethereum held at the end of the reporting period represents the lowest price of one Ethereum quoted on an active exchange at any time since receipt ,” according to the submission.
According to Playboy, the company lists these digital assets as “indefinite intangible assets” that could incur losses if the fair value of the asset falls below its carrying value.
Image: ethereum.org
Even if the fair value of the asset increases after the impairment loss, the company’s impairment loss on the digital asset is not recoverable.
Playboy’s Foray into Web3
Playboy announced its interest in NFT in March 2021, becoming one of the first major companies in the adult entertainment industry to explore the potential of blockchain technology.
The move appears to be part of a broader strategy to stay relevant and engage with a new generation of fans, while also exploring new revenue streams in the digital age.
Aside from the Rabbitars, Playboy also created NFTs for some iconic magazine covers, including Playboy’s first issue from 1953 and the famous 1971 cover featuring actor Burt Reynolds. These NFTs are sold through various NFT markets, such as OpenSea and Rarible.
In addition to the project, Playboy has launched its own NFT marketplace, which allows artists to display and sell digital artwork as NFTs. The marketplace is built on the blockchain and provides a safe and transparent platform for creators and collectors.
ETH total market cap at $210 billion on the daily chart at TradingView.com.
Playboy also created NFTs as part of collaborations with other brands and artists. For example, they collaborated with streetwear brand Supreme for a limited edition NFT drop featuring the artwork of Takashi Murakami.
In addition to these projects, Playboy has expressed interest in exploring other Web3 technologies, such as decentralized finance (DeFi) and the development of the metaverse.
Playboy has also been allowed Bitcoin payments for TV offerings and Playboy.com.
-Featured image from News.com.au