Applications and Use Cases

Playboy Brings GBT to Court Claiming Fraud in Blockchain Deal

August 15, 2018

There is no denying that pornography exists on the bleeding edge of technology. Let’s face it, sex sells, and when the porn industry bets on a burgeoning technology that tech typically wins the day. Next up to the spotlight: blockchain.

As Pornhub VP Corey Price noted recently, Pornhub Vice President Corey Price said in a press release, “History has proven that the adult entertainment industry plays a critical role in adoption for innovative technology. We saw that with VHS, Beta Max, credit card payment icons and, most recently, VR goggles. We expect to see widespread adoption of crypto and blockchain in short order."

This year, we’ve seen a few major pornography players adopt blockchain and digital currencies, but Hugh Hefner must be shaking his head at Playboy. According to a Los Angeles Times report, its attempted foray into this up-and-coming technology is turning quite turbulent.

A few months back, Playboy partnered with Canadian blockchain company GBT (Global Blockchain Technologies) to develop a crypto wallet designed to support a VIT (Vice Industry Token) and integrate it on Playboy’s media sites.

The ICO raised more than $20 million in the first 24 hours, with the intention of the blockchain-based platform to reward viewers on the portal. Unfortunately, Playboy is pointing to the pairing’s contract and is taking GBT to court for failing to fulfill their arrangement, claiming fraud. The lawsuit states GBT failed to implement the VIT on Playboy’s sites and neglected to pay the $4 million it agreed to.

GBT characterizes the suit as “frivolous,” but while it and Playboy both cry victim, those truly missing out here are Playboy’s users. The provider of entertainment for men intended on delivering rewards to users, paying out crypto as loyalty rewards.

Loyalty programs are leveraging blockchain to reward users in a timely, accurate and secure manner. It’s unfortunate Playboy’s experience was what it was, as blockchain is enhancing influencer attribution and encouraging greater user engagement via reinvigorated loyalty programs.

Edited by Maurice Nagle



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