Playboy has reported a staggering $4.9 million loss on its non-fungible token (NFT) funds, in keeping with a latest submitting with the US Securities and Exchange Commission (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 increase.
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 keeping with a SEC submitting. As of December final yr, the worth of the ETH acquired from the NFT gross sales was a mere $327,000. The Playboy NFTs are labeled as “indefinitely-lived intangible assets,” which change into topic to impairment losses when their honest worth falls considerably under their carrying worth throughout a selected interval.
ETH’s worth has dropped by over half for the reason that firm bought its Playboy NFTs, with the market worth of 1 ether starting from $964 to $3,813 throughout the yr ending December 31, 2022. Consequently, destructive market worth fluctuations might tremendously affect Playboy’s earnings and carrying worth, whereas optimistic worth modifications will solely profit earnings if the corporate sells its Ethereum holdings at a achieve.
Playboy’s Legacy Leaped into NFTs with Rabbitars Collection
The Playboy NFT Rabbitars Collection 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. Some of the rarest Rabbitar traits pay homage to culturally vital 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 iconic 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 Party People, in addition to iconic figures from Playboy’s previous and current. DJ BLOND:SH ignited the dance ground, whereas gamers had the chance to play-to-earn particular rewards.
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