Playboy has reported a staggering $4.9 million loss on its non-fungible token (NFT) funds, in response to a latest submitting with the US Securities and Alternate Fee (SEC). The losses stem from the corporate’s acceptance of Ether (ETH) as fee for its “Rabbitars” Playboy NFT assortment, which have been launched in 2021 throughout a crypto market growth.
Playboy NFT $4.9M Crypto Plunge: NFT Losses Sting
The worth of Playboy’s ETH holdings has decreased considerably, resulting in a $4.9 million impairment loss, in response to a SEC submitting. As of December final yr, the worth of the ETH obtained from the NFT gross sales was a mere $327,000. The Playboy NFTs are categorised as “indefinitely-lived intangible belongings,” which grow to be topic to impairment losses when their honest worth falls considerably beneath their carrying worth throughout a selected interval.
ETH’s worth has dropped by over half for the reason that firm offered its Playboy NFTs, with the market worth of 1 ether starting from $964 to $3,813 through the yr ending December 31, 2022. Consequently, adverse market worth fluctuations may enormously affect Playboy’s earnings and carrying worth, whereas constructive worth adjustments will solely profit earnings if the corporate sells its Ethereum holdings at a acquire.
Playboy’s Legacy Leaped into NFTs with Rabbitars Assortment
The Playboy NFT Rabbitars Assortment launched in October 2021. It featured 11,953 distinctive 3D rabbit characters, or Rabbitars, impressed by the model’s iconic brand. These characters have been generated utilizing over 175 traits, together with fur, ears, facial expressions, attire, equipment, and occupation-related traits. A few of the rarest Rabbitar traits pay homage to culturally important facets of Playboy’s artwork and editorial historical past.
Playboy Is No Stranger to Web3
In December 2022, Playboy celebrated its 69th birthday within the Sandbox metaverse with a momentous occasion. The long-lasting model additionally launched an NFT assortment representing its wealthy historical past. The Playboy 69th Birthday expertise within the Sandbox revolved round a 6.9-day occasion starting on December twelfth.
This celebration featured operational, playable Playboy Sandbox characters. These included Playboy Rabbitars and Playboy Get together Individuals, in addition to iconic figures from Playboy’s previous and current. DJ BLOND:SH ignited the dance flooring, whereas gamers had the chance to play-to-earn particular rewards.
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