Could Crypto Be The Answer To OnlyFans Controversy?
Over the last week or so, no news has been more shocking globally than the decision by OnlyFans to ban certain types of adult content from the user generated content driven platform.
The entire world questioned why the company would kill off its money maker and what made it a household name in the first place – a move that in the past has killed other adult-centric platforms such as Tumblr.
The company’s CEO explained that it was really all due to banks and other money services providers putting pressure on the company as they did PornHub and other adult content brands. With banks at the center of this controversy, could cryptocurrencies like Bitcoin or decentralized blockchain technology itself be the solution to the problem companies like OnlyFans are facing?
OnlyFans Reveals Shocking Ban Of Adult Content
Over the last year and then some since the pandemic began and lockdown conditions swept the globe, savvy individuals have looked to the internet for revenue streams to make up for the jobs they can no longer go to. Many have turned to margin trading Bitcoin and the stock market on platforms like PrimeXBT and Robinhood, which has made trading a popular option for digital forward workers who want to work using their minds. Others have chosen platforms like OnlyFans and have put their bodies to work instead.
The adult work industry always is surrounded with stigma and that creates a negative perception around anything it touches. As OnlyFans has exploded in popularity, it has placed additional scrutiny on the payment providers that digital content creators use to cash out their earnings related to monthly subscription fees.
OnlyFans Ban Due To Pressure From Banks, CEO Says
After the initial shock and awe that OnlyFans would be removing most forms of adult content from their website, especially explicitly sexual content that helped propel the platform to internet stardom, the online community immediately assumed the move was done to appease potential investors.
However, OnlyFans CEO Tim Stokely revealed it had more to do with pressure from big banks and other payment giants.
“We didn’t make this policy change to make it easier to find investors,” Stokely told the Financial Times. “The change in policy, we had no choice — the short answer is banks,” Stokely said.
Mastercard And VISA Step Up Scrutiny Over Content Sources
Other payments giants like VISA and Mastercard recently used their influence to impact PornHub and other adult centric companies. Mastercard is rolling out new rules starting October 1, 2021 to this effect, however, Stokely says this had no bearing on the decision as the platform is already compliant with this policy change.
However, it does demonstrate the pressure these adult companies are getting from payment providers, banks, and then some. Much of the scrutiny is due to increased fears that the payments could be funding illegal activities like child pornography or human trafficking.
These are horrible atrocities and real challenges, but crime will find a way with or without banks. In fact, ditching banks entirely could be how the OnlyFans ecosystem could adapt and survive, without cutting off its money maker entirely.
How Decentralized Technology Could Help Change Adult Work
Cryptocurrencies are built on a decentralized, distributed ledger technology called blockchain. This technology was first introduced alongside Bitcoin, and is arguably what makes Bitcoin so special.
Bitcoin was created to remove the need for banks and other third-party intermediaries from the financial system, and allow users and businesses to be their own banks. Using the technology, anyone can receive, send, or store crypto assets that have monetary value.
With no third-party intermediary involved like a bank or Mastercard and VISA, there won’t be any companies putting pressure on business operations or forcing difficult changes that could cripple a company’s business model.
Not to mention the enormous impact the creator community will feel due to this crackdown, as thousands of digital content creators will soon be without their primary income stream.
Digital Content Creators To Switch To Crypto
A switch to a fully decentralized system won’t be easy, and it would take not only the company, but the content creators to fully adopt the new system. But when posed with a choice between making no income, or making crypto instead of cash, content creators could be swayed.
OnlyFans itself could continue its lucrative business model, letting the blockchain-based ecosystem grow without any oversight from financial services providers. There would be no need for a ban, and banks would no longer be involved and feeling the scrutiny.
There could be an unfortunate side effect that Bitcoin and other cryptocurrencies then become associated with porn, sex, and potentially more crime, but even cash is regularly used for these purposes.
How Crypto Is The Solution To The OnlyFans Situation
The OnlyFans situation is a prime example of how decentralized technologies can alleviate the challenges posed by third-party intermediaries. The current third-parties in control, such as banks and governments, are slowly losing control. As control slips through their grasps, they are attempting to tighten whatever grip they have left over the situation as we are seeing now.
Bitcoin was created so that in the future, third parties couldn’t have the same level of control over money. The technology has since been adapted to fit all kinds of other situations. A new system could be created, or an existing cryptocurrency adapted for use with OnlyFans. Even Bitcoin itself could serve this purpose.
Regardless of what comes next, OnlyFans and its digital content creator community can take a nod from the crypto market. Bitcoin and crypto has been slowly slipping through the control of banks, governments and more. Suddenly, banks are now adopting crypto themselves, and there are major bills on Capitol Hill that are crypto-focused. The technology isn’t going away, and the third-parties are now having to change their rules for crypto instead of forcing crypto to play by their rules – which is exactly what OnlyFans would hope to achieve themselves by adopting a decentralized, crypto-focused payment platform to power its services.