Onlyfans invested $20M in Ethereum
OnlyFans invested millions in Ethereum, but the timing was unfortunate. Despite the bearish market, the platform's revenue and creator count grew in 2022.
OnlyFans, the renowned adult content platform, recently disclosed its Ethereum holdings, revealing a multi-million dollar investment in the cryptocurrency. However, the timing of this investment might have been less fortunate for the company.
Recently, the Ethereum community has been buzzing about OnlyFans' Ethereum holdings. This information came to light through the financial statement presented by its parent company, Fenix International Limited. It appears that since the beginning of 2022, OnlyFans has held assets in Ethereum. Specifically, they had $19.9 million in ETH, which unfortunately decreased by a staggering $11.4 million due to the bearish market in November 2022.
OnlyFans parent company purchased $19.889 million worth of Ethereum.
OnlyFans isn't new to the world of cryptocurrency. They've previously integrated NFTs as verified profile pictures on their platform. Moreover, creators can currently obtain an Ethereum badge to prove their asset ownership.
This move followed the strategy of Meta's social platforms, Instagram and Facebook, aiming to empower creators to leverage their potential through Web3 alternatives. At the same time, it was a step to "explore the role of NFTs on the platform," as previously stated by CEO Amrapali Gan.
Regrettably, the announcement of this integration coincided with the onset of a prolonged bear market. Ethereum's value dropped from nearly $3,000 to $1,300 in November 2022, only to rebound slightly to around $1,600 recently.
Despite the seemingly ill-timed Ethereum investment, OnlyFans still experienced a positive 2022. The company's revenues rose to $5.6 billion from $4.8 billion in 2021, marking a 47% growth in the number of creators. Additionally, the subscriber count increased by 27%.
OnlyFans' venture into Ethereum might have yielded a different expected return due to market fluctuations. However, the company's overall growth and willingness to innovate in the digital space demonstrate its resilience and forward-thinking approach.