SpankChain, a blockchain-based adult entertainment platform, announced the closure of its cryptocurrency payment processor, SpankPay, due to the lack of available adult-industry-friendly service providers. According to the company, their search for a new payment processor had been ongoing for months, but they needed help finding a suitable partner.
SpankPay was launched in 2018 and allowed adult performers and content creators to accept various cryptocurrencies as payment. Its closure is a major blow to the adult industry, which increasingly relies on cryptocurrencies to conduct transactions in the face of censorship and discrimination from traditional financial institutions.
The adult entertainment platform SpankChain, based on the Ethereum blockchain, has announced the closure of its cryptocurrency payment processor, SpankPay. This decision was made following the loss of Wyre in February, their payment service provider, and despite their efforts to find a replacement, they were unsuccessful. As a result, the company has decided to shut down the SpankPay platform.
According to a statement released by SpankPay in February, the company’s former payment service provider, Wyre, had terminated their agreement due to SpankPay’s violation of certain rules set by third-party payment processors or networks.
While the specific nature of these violations was not disclosed, they resulted in the termination of Wyre’s services, significantly impacting SpankPay’s ability to process payments. Despite attempts to find a new provider, the platform needed help to secure a replacement, leading to its eventual closure.
SpankPay recent post on March 20th that the termination of their agreement with Wyre was a “targeted shutdown” due to their new payment processor’s policy of not working with adult businesses.
While the exact reason for Wyre’s termination of services in February was not specified, SpankPay’s recent statement suggests that the decision was influenced by their association with the adult entertainment industry. This action has further complicated SpankPay’s efforts to secure a replacement payment service provider, ultimately resulting in the platform’s closure.
SpankPay Response
According to SpankPay, they have faced challenges in finding alternative service providers due to the nature of their industry. They claim that any attempts to seek out other services have been rejected, with providers citing their involvement in the adult industry as the reason for the refusal.
This action highlights the ongoing stigma and discrimination faced by businesses operating within the adult industry, often resulting in a lack of access to essential services and resources. Despite these challenges, SpankPay continues to operate and provide services to its clients within the industry.
The company has reassured its users amidst a shutdown, stating that their funds are secure and will be returned to them as soon as possible. This move is a critical step in maintaining customer trust and confidence in the company’s ability to handle any challenges that may arise.
In addition, by assuring users of the safety of their money and providing a timeline for its return, the company demonstrates a commitment to transparency and accountability.
Moreover, it is urging its users to adopt cryptocurrency wallets and take control of their finances. They aim to empower customers to manage their transactions and safeguard their privacy. The company also plans to invest in developing new products that cater to the needs of the adult industry.
This proactive approach highlights the importance of innovation and adapting to changing technology to stay competitive. By investing in new products, the company aims to provide valuable services to its users while ensuring long-term growth and sustainability.