On November 14, Pornhub, the world's leading adult video sharing site, announced that payment processor PayPal had blocked payouts to its live performers. In a blog post, the company suggested alternatives such as checks or the cryptocurrency Verge (XVG).
PayPal Blockade Shakes the Industry
Pornhub confirmed via Twitter and a blog post: "Our currently available payment methods are Paxum, check, verge cryptocurrency and direct deposit." The site also noted that models need an XVG-compatible wallet to receive crypto payments. The tweet read: "Urgent: PayPal has stopped all Pornhub model payouts. If you had PayPal as your payout method please change to direct deposit/SEPA, or payment by check in your settings."
Following the announcement, XVG's price saw a slight uptick but dropped 2.5% on the day and 9.4% over the week. Crypto community members seized the opportunity to urge Pornhub to accept more digital currencies like Bitcoin Cash (BCH), Bitcoin (BTC), and Ethereum (ETH). One BCH supporter stated: "Bitcoin Cash is there to help you and your customers." Another suggested models contact Brenna Sparks for crypto payment guidance.
The Long Battle Between Adult Industry and Crypto
For years, crypto advocates have pushed for synergy between adult entertainment and digital assets. Last spring, Pornhub began accepting XVG and later announced support for ZEC and TRX. However, reports indicated that only 1% of purchases used XVG, while ZEC and TRX support remained pending.
PayPal and major credit card companies have long blocked sex workers and related payment services. In 2014, adult star Teal Conrad was banned from PayPal, followed by many others barred by institutions like Chase. Twitter users criticized Pornhub for not aggressively lobbying against the SESTA/FOSTA bill, which became law in April 2018 and intensified pressure on adult businesses.
Despite hurdles, digital currencies are gradually penetrating the adult industry. A report by adult studio Vogov found that about 470 adult video sites have exposure to crypto. However, this barely scratches the surface of the massive porn industry. As financial incumbents escalate restrictions, more firms may turn to censorship-resistant cryptocurrencies.