Fenix International Limited, the company behind the popular adult content subscription-based platform OnlyFans, has invested heavily in Ethereum (ETH). Its move demonstrates the growing integration of cryptocurrency with traditional businesses.
According to the company’s 2022 financial report recently filed with British financial regulators, the firm purchased Ether worth about $19.9 million during the year.
Moving With The Trend
Fenix International Limited made a significant move in cryptocurrency by acquiring large volumes of the second-largest digital asset by market cap, Ether. However, as of November 30, 2022, the amount of ETH the company purchased had incurred an $8.455 million impairment loss.
This drop in ETH’s value reduced the recorded value of Ether on the balance sheets to $11.434 million. It also illustrates the inherent volatility of the cryptocurrency market. Notably, the price of Ethereum fell from $2,797.43 to $1,298.94 during the period of the financial report.
OnlyFans is no stranger to ETH investments and ETH-related products, having ventured into digital assets acquisition since last year. In 2022, the platform made a splash by introducing a one-of-a-kind feature that allowed content creators to decorate their profiles with authenticated Ethereum-based NFTs.
Observers interpreted this strategic move as a bold step toward increasing creators’ influence while further exploring Non-Fungible Tokens (NFTs). Amrapali Gan, CEO of OnlyFans, revealed that the central goal of this move is to provide creators with the means to explore the full profit capabilities of their content.
However, the cryptocurrency landscape in 2022 was not without its challenges. Almost throughout last year, there were notable disruptions in the industry, including the collapse of Terra’s UST stablecoin and its governance token LUNA.
In addition, the industry saw the collapse of crypto lender Celsius and leading cryptocurrency exchange FTX. Despite these setbacks, Ethereum remains a prominent digital asset of interest among many investors and traditional entities.
Leveraging Ether For Growth
Known for its adult content offerings, OnlyFans grew further in the past year. The platform’s earnings skyrocketed to a staggering $5.6 billion in 2022, a significant spike from the $4.8 billion it earned the previous year.
Notably, the firm’s active creator community grew by 47%, while the total number of subscribers increased by 27%. Along with these accomplishments, OnlyFan attracted the attention of more than 50 million new users, and an impressive cohort of over 1 million new content creators joined the ever-expanding platform.
Furthermore, Fenix International Limited’s strategic decision to incorporate Ethereum into its operational funds reflects a more significant trend among conventional businesses. Traditional businesses from several industries are becoming aware of the limitless possibilities inherent in blockchain technology and cryptocurrencies.
According to on-chain data, this awareness creates a surge in their investments in these digital assets, with Ethereum being their preferred option. With its distinct use cases beyond payment settlements, Ethereum’s appeal captures the attention of individual investors and corporate behemoths.
Thus, OnlyFans’ substantial Ethereum investment is a prime example of this trend, highlighting the growing confidence in the crypto landscape’s long-term potential. At the time of writing, Ethereum is trading at $1,650, down 0.3% over the last 24 hours, according to Coingecko data.
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