Navigating Economic Challenges in Adult Websites with Cryptocurrency

The Economic Challenges of Adult Websites

In the ever-evolving digital landscape, adult websites occupy a challenging niche. While internet users are increasingly embracing these platforms, mainstream payment processors often shy away from engaging with them. This creates a scenario where adult websites find themselves in an economic limbo, facing more hurdles and incurring higher costs to connect with traditional banking systems compared to most other online businesses.

This is precisely the predicament that Crass Kitty, the founder behind the innovative AI-driven sexting platform MyPeach.AI, is addressing by turning to cryptocurrency. Many users of MyPeach.AI may be unaware that while they are engaging in flirtatious banter with AI-generated avatars of popular OnlyFans models or purchasing enticing, AI-created images, the payment process involves a more complex backend transaction.

Typically, users might opt to pay with their credit cards, but unbeknownst to them, they are actually acquiring stablecoins. These stablecoins are then utilized by MyPeach.AI to manage various operational costs, including employee salaries, the expensive process of generating AI content, and compensating real-life OnlyFans models who have consented to have their images, voices, and personalities used to train the AI.

Kitsy highlights a significant issue: payment processors often impose a fee ranging from 3% to 5% for credit card transactions when purchasing cryptocurrency. This rate skyrockets to an astonishing 10% to 15% specifically for adult entertainment transactions, which Kitty describes as an exorbitant burden on her business. “The financial strain is palpable, and it creates a compelling incentive to explore cryptocurrency solutions,” she explains.

The Complexities of Payment Processing

To clarify, MyPeach.AI’s users are indeed accessing adult content, and many choose to pay via credit card. However, behind the curtain, these transactions are essentially converting to stablecoins, a necessity driven by the exorbitant fees associated with traditional payment processors in the adult industry. This sector is notorious for experiencing high chargeback rates, prompting card processors to levy higher-than-average transaction fees. The cumulative effect is a significant reduction in revenue for business owners.

However, cryptocurrency isn’t a one-size-fits-all solution. In her previous venture—an NFT marketplace dedicated to porn stars—Kitty discovered that newcomers often struggled with the complexities of setting up wallets, acquiring tokens, and facilitating transfers. This steep learning curve often deters potential users, generating friction in the user experience.

Innovation at mtnDAO

Currently, Kitty is shaping her vision at the mtnDAO hacker house in Salt Lake City. Previously, during another mtnDAO event, she made the strategic decision to pivot towards AI development, anticipating that customized experiences driven by large language models would attract users eager for unique interactions. As platforms like OnlyFans have demonstrated, consumers are willing to invest in personalized sexual content.

MyPeach.AI merges these concepts with a cryptocurrency dimension, encouraging users to engage in flirtatious exchanges with AI personas tailored to their specific sexual preferences or mimicking real-life models. Users can earn PEACH tokens as rewards for their interactions, which can then be redeemed for AI-generated images. Should users find themselves short on tokens, they can conveniently replenish their balance using a credit card, which is where the stablecoin process comes into play.

According to Kitty, a limited number of banks are open to collaborating with cryptocurrency ventures, and even fewer are willing to partner with adult entertainment businesses. The intersection of these two sectors remains largely untapped. “Having the majority of our treasury on-chain provides us a safety net; we don’t have to fear losing access to our funds if our banking partners decide to sever ties,” she notes.

Kitty has been an active participant at mtnDAO since its August 2022 edition, and she appreciates the vibrant atmosphere of the bustling hacker house, which contrasts sharply with her routine of working from her Seattle apartment. In Salt Lake City, she finds the opportunity for real-time feedback from the audience invaluable, stating, “It’s been incredibly beneficial to receive live input from such a diverse group of individuals.”