Playboy Magazine’s parent company, Playboy Enterprises, is suing crypto company Global Blockchain Technologies (GBT) for fraud and breach of contract. Playboy partnered with GBT in March when the company announced that it was developing a crypto wallet. The partnership idea was to create a new digital currency called Vice Industry Token (VIT) whose wallet will be on Playboy TV before expanding to other social media platforms. The company had also noted that its customers were to start earning its tokens to view content as well as voting for content.
Playboy Lawsuit Details
According to the lawsuit in the Los Angeles County Superior Court, GBT and Playboy Enterprises had agreed to implement blockchain technology. In the agreement, GBT was to integrate VIT tokens on all the sites owned by the media company. GBT is said to have breached the agreement leading to the lawsuit. The media company is now seeking compensation for damages. The initial deal had included a $4 million payout.
For its part, GBT believes that it will win the case filed by Playboy Enterprises. Many adult entertainment companies are working to integrate digital currency payments on their platforms. The main aim of these companies is to replace traditional payment platforms which have heavy processing fees, while digital currencies are cheaper.
Some of the major adult content companies, like Pornhub and Brazzers, are already accepting digital currencies. More to that, many porn stars have said that they are now saving in digital currencies. Digital currencies are decentralized, making it easier for these people to control their finances. Most of these actors prefer Bitcoin. Despite Bitcoins price drop, the digital currency is still above Gold in settlement volume.
Bitcoin Market
Bitcoin has the potential to become a great asset class. However, the volatility of Bitcoin has been the main hindrance to the growth of the market because at the moment it’s unpredictable. Right now, the cryptocurrency market has lost more than 60%.
The only thing holding Bitcoin back at the moment is the futures and exchange-traded funds. ETFs have been a huge speculation in the cryptocurrency sector with the SEC stopping most of the application for the same.
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