Adult Crypto Payment Service SpankPay Closed Due To Lack Of Funding Problem
- Spankchain’s crypto payment service SpankPay announced that after its upstream payment processor, Wyre Payments terminated its agreement with the company, the service will be closed.
- The company said the customer’s money is still safe and will be refunded as soon as possible.
- Spankchain would shift its focus to other products and focus on changing the legislation that caused the problem.
SpankPay, an adult-themed payment service, announced its closure after its upstream payment processor, Wyre Payments, canceled its arrangement with the firm.
Wyre’s new payment processor, checkout dot com, does not accept payments from adult enterprises, according to the payment company.
SpankPay was forced to stop operations in January 2023 after its long-time infrastructure partner, Wyre, temporarily halted service owing to financing concerns. During the downtime, SpankPay was able to secure user assets and continue to allow user withdrawals. Wyre got additional cash a few days later, allowing SpankPay to resume operations.
The period of normality was short-lived since SpankPay was shut down again in early February, but Wyre continued to function smoothly. Within 24 hours, Ameen Soleimani, the creator of SpankChain, got an email from a Wyre official announcing that Wyre was suspending its service due to breaches of network restrictions in its user agreement, despite earlier vowing to support the company.
But, things did not proceed as planned when Wyre discontinued its sponsorship entirely.
Customers’ monies, according to SpankPay, are secure and will be transferred to them as quickly as feasible.
SpankPay was introduced in August 2019 by SpankChain, an adult industry blockchain, “as a safe haven for our community,” enabling fans to pay for adult material instantaneously and discreetly using Bitcoin, Ethereum, Litecoin, and Monero. More coins were eventually added to the service.
SpankPay has struggled to locate alternative service providers to offer banking services to a firm catering to the adult industry.
Because of the adult industry’s lengthy history of friction with the regular banking system, many are turning to cryptocurrencies. When Visa and Mastercard barred consumers from using their credit cards to pay for Pornhub’s premium service, the pornographic website Pornhub started accepting cryptocurrencies in December 2020.
The decision came after the Canada-based firm was the subject of a scathing New York Times report that highlighted the existence of child pornography and sexual abuse on the site. Pornhub has now implemented substantial policy modifications to limit the distribution of these movies.
SpankChain has opted to concentrate its efforts for the time being on SpankMatch, its social networking site, and to close SpankPay for the immediate future. SpankChain will also invest in the NFT subscription platform and marketplace Mintstars, which is working on a new tipping platform powered by Web3.
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