In a move that showcases the growing intersection between cryptocurrency and mainstream business, the parent company of subscription platform OnlyFans has made a significant investment in Ethereum (ETH). The company, Fenix International, recently revealed that it had allocated nearly $20 million to Ether in 2022 despite facing a decline in the overall value of its crypto assets. This bold move comes after a surge in OnlyFans’ revenue and an expanding user base.
Crypto Investment and Its Evolution
Fenix International’s financial filing, submitted to the UK corporate registry on August 24, 2023, shed light on the company’s cryptocurrency holdings. The document disclosed that Fenix had acquired approximately $19.9 million worth of Ethereum between 2021 and 2022. However, as the crypto market experienced fluctuations and declines throughout the year, the value of the Ether holdings decreased by $8.5 million by November 2022. However, his marked a period of experimentation and resilience for Fenix in the volatile world of cryptocurrencies.
Despite the setbacks in the crypto investment front, the reporting period ending on November 30, 2022, revealed impressive growth in other areas of the company. The filing indicated that OnlyFans’ parent company experienced a substantial 16.6% rise in revenue, surging from $4.8 billion in 2021 to $5.6 billion in 2022. This growth was accompanied by a 47% increase in content creators using the platform and a 27% rise in total subscribers.
Diversifying Through Crypto Ventures
Fenix International’s foray into cryptocurrency is not its first venture in the digital asset space. The company displayed a forward-thinking approach in early 2022 by enabling verified creators on its platform to replace their profile pictures with Ethereum-based non-fungible tokens (NFTs). This move illustrated a willingness to adopt emerging technologies and engage users in novel and interactive ways.
Additionally, Fenix International demonstrated its innovative spirit by supporting the launch of Zoop, a celebrity trading card platform, in June 2022. Developed on the Ethereum scaling solution Polygon, Zoop introduced a new dimension to celebrity fandom by allowing users to trade 3D digital playing cards of their favorite stars. This initiative highlighted the company’s ability to leverage blockchain technology beyond its core subscription-based business model.
Rising Stars in the Decentralized Social Media Landscape
Interestingly, Fenix International’s investment in Ethereum coincides with a notable shift in the landscape of decentralized social media platforms. However, adult content creators have increasingly gravitated towards friends.tech, a recently established decentralized social media platform, has garnered substantial attention and participation. As a result, this migration underscores the allure of new platforms that leverage blockchain technology to give creators more control over their content and a direct connection with their audience.
As Fenix International’s investment in Ethereum demonstrates, even in the face of initial challenges, companies recognize the potential of cryptocurrencies and blockchain technology to diversify their portfolios and engage users in innovative ways. With the continued growth of the crypto space and its integration into various industries, more businesses will likely follow suit, finding unique opportunities to harness the power of digital assets for both financial gain and user engagement.