SpankChain, an Ethereum-based platform for adult entertainment, has decided (1) to shut down its cryptocurrency payment platform, SpankPay. This comes after the platform lost its payment service provider, Wyre, in February and was unable to find a replacement.
SpankPay came clean in February about the fact that its previous provider had terminated their agreement to supply them with cryptocurrency payment processing services. The reason given was “violations of any 3rd payment gateway or network rules.”
After a long and difficult consideration, we have decided to close down SpankPay, our crypto payment processor that we built as a safe haven for our community. Rest assured your money is safe and we’ll get it to you as soon as possible.
— SpankPay (@SpankPay) March 20, 2023
SpankPay asserted that this was a “targeted suspension” by Wyre and that the reason for this was that Wyre’s new payment service would not function properly with the adult business.
The company cited difficulties in establishing banking links as the key motivation for its decision to close its doors.
According to a statement released by the Chief Executive Officer of SpankPay, the company was forced to put up with continuous uncertainty & delays in its efforts to protect financial activities.
About SpankPay
SpankPay is a payment processing platform that was launched in 2018 specifically for the industry of adult entertainment.
Customers could use various cryptocurrencies, including Bitcoin and Ethereum, to complete transactions such as payments and contributions through the company.
Despite the notoriety of SpankPay as a corporation, it was unsuccessful in addressing the challenges present in financial ecosystems.
The termination of operations at the company brought to light the challenges that bitcoin companies face when attempting to secure dedicated banking services.
SpankPay asserts that its efforts to find another service provider were unsuccessful since no one was interested in collaborating with a business that operates in the adult industry.
SpankPay acknowledged in a statement on Twitter that the company was operating in an unpleasant atmosphere and that the growing problems were making it extremely challenging for the business to function with a comparatively small team and a specialized audience.
SpankChain would be an Ethereum-based blockchain that aims to assist adult content makers in removing third-party intermediaries, such as conventional banks, who have a well-documented dispute history with the adult entertainment industry.
SpankChain is designed to support adult content creators. The sector of adult entertainment has suffered a major setback due to the closure of the SpankPay website.
It also serves as a cautionary tale for alternative cryptocurrency businesses, who, in order to thrive in the current environment, must search for banking services.
In the not-too-distant future, companies dealing in cryptocurrencies will look to form partnerships with banks and other financial institutions in order to guarantee the utilization of banking services that are both trustworthy and convenient.
Given the ongoing challenges that crypto companies have in maintaining their banking links, it isn’t easy to know for certain whether the proposed agreements will result in anything tangible.
Notwithstanding this, the closure of SpankPay raises questions regarding the importance of lobbying and education on the part of the bitcoin sector.
The cryptocurrency industry can only hope to overcome the obstacles posed by the banking system and establish a payment environment that is more robust and self-sufficient if its participants collaborate and work together.
Nonetheless, the company has ensured users that their money would be protected, despite the fact that the shutdown may come as a surprise to some.
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