Playboy’s NFT Venture Led to $5 Million Loss in Ethereum

Playboy, the renowned media company that is a favorite to men from around the world, has reported a loss of $5 million on its Ethereum holdings from last year due to the prolonged crypto winter that caused a decline in cryptocurrency prices.

In October 2021, the company unveiled its “Rabbitar” NFT project, but the largest altcoin by market cap, ETH, has lost over 60% of its value since then.

In addition to the Rabbitars NFT project, Playboy has also created NFTs for some of their iconic magazine covers, including the first issue of Playboy from 1953 and the famous 1971 cover featuring actor Burt Reynolds.

According to an annual report, the company accepted Ethereum as payment for its Rabbitars NFTs, held on its balance sheet as digital assets.

The company accounts for its digital assets as “indefinite-lived intangible assets” liable to impairment losses if their fair value falls below their carrying value at any time.

Playboy has shown interest in exploring Web3 technologies, such as decentralized finance (DeFi) and metaverse development.

In addition, the company has created NFTs for some of its iconic magazine covers and launched its own NFT marketplace, which provides a secure and transparent platform for creators and collectors. Playboy has also allowed Bitcoin payments for its TV offering and Playboy.com.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.