SpankChain, an Ethereum-based blockchain platform designed to help adult content creators cut out traditional banks and intermediaries, has closed its crypto payment processor, SpankPay. The closure comes after the company lost its payment service provider, Wyre, in February due to “violations of any third-party payment processor or network rules.” SpankPay attempted to find another service provider, but all attempts were rejected due to the adult industry nature of their business.
In a Twitter thread, SpankPay announced that the decision to close the payment processor was due to the escalating hostility of the banking environment towards adult industry payment processors, which had made it untenable for the small team and niche market it served. Despite the shutdown, the company reassured users that their money was safe and would be returned as soon as possible.
SpankPay was launched in July 2019 as an adult-industry-friendly payment solution that enabled adult entertainers and merchants to accept cryptocurrency for their services. The closure of SpankPay is a significant blow to SpankChain, as the platform was a key part of its blockchain ecosystem.
The adult entertainment industry has always faced challenges with traditional banking systems, as banks have been reluctant to work with the industry due to its controversial nature. SpankChain sought to change this by providing a blockchain-based platform that allowed adult content creators to transact directly with their customers, cutting out traditional intermediaries.
The closure of SpankPay highlights the ongoing challenges faced by the adult entertainment industry in accessing traditional banking services. The industry has been forced to rely on alternative payment methods, such as cryptocurrencies, to transact with customers. The use of cryptocurrencies has enabled adult content creators to access a global market and avoid the restrictions imposed by traditional banks.
Despite the challenges, SpankChain remains committed to advancing the adult industry and has promised to continue developing and investing in products that serve the niche market it serves. The closure of SpankPay is a significant setback for the company, but it is determined to continue to innovate and find new ways to help adult content creators succeed in the digital age.