OnlyFans Dedicates $20 Million to Ethereum as Market Optimism Grows

Fenix International the enterprise responsible for the adult subscription content platform OnlyFans declared an investment of $19.9 million in Ethereum. Nonetheless, by November 2022, the value of this asset had suffered a loss of $8.5 million, leaving an adjusted value of $11.4 million.

This move reflects the broader downturn experienced in cryptocurrency markets over the preceding year.

OnlyFans asserts that this investment aligns with their strategy for diversifying their portfolio and embracing blockchain innovations.

The company is also broadening its platform capabilities—enabling users to showcase Ethereum-based NFTs as profile images and launching Zoop developing a trading card platform for celebrities that leverages Ethereum’s scaling capabilities, Polygon .

OnlyFans’ latest financial document indicates that they've allocated a portion of their operating funds into Ethereum.

OnlyFans acquired $19.889 million worth of ETH. As of November 30, 2022, the purchased ETH reflected an impairment loss of $8.455 million with a net carrying amount... pic.twitter.com/dW1sYQfIkp

— Wu Blockchain (@WuBlockchain) August 27, 2023

Huge financial loss or smart move?

Despite the crypto investment’s Despite the challenging market conditions, OnlyFans reported a remarkable 16.6% growth in revenue, totaling $5.6 billion for the year ending November 2022.

The platform also experienced a 47% increase in content creators and a 27% rise in the total subscriber count. Leonid Radvinsky the company’s owner collected approximately $485 million in dividends as demand for the platform surged.

OnlyFans' foray into cryptocurrency comes at a time when the platform is witnessing exponential growth. Its revenue structure, which allows the platform to retain about $1 for every $4 earned by content creators, has proven to be very lucrative.

The platform retains up to 25% of the earnings of its users. Yet, the interest continues to escalate in recent years.

What\'s interesting about @OnlyFans parent company investing in #Ethereum , not because of hype.

They view it as a viable tool for income generation and user engagement. The $20 million investment in Ethereum is a preparatory move for development and growth. $ETH Fenix International’s sizeable Ethereum investment could be seen as a risk by some; however, considering the company’s progressive history and growth trajectory, it can more accurately be described as a calculated investment. pic.twitter.com/aO03F4SRV2

— Ethprofit.eth 🦇🔊 (@Ethprofit) August 27, 2023

This approach not only signifies a move toward diversifying their portfolio but also represents a step toward the broader acceptance of cryptocurrencies. Fenix’s strategies illustrate the growing appeal that major corporations have towards cryptocurrencies, particularly Ethereum.

Ultimately, the success of this investment initiative is something that will unfold over time.

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