Verge & PornHub: Who Pays For Porn?

Vlad Costea
  • Verge's partnership with Pornhub has resulted in a slump in the XVG price
  • The privacy coin can be used to buy premium subscriptions on the porn site, but are people really willing to pay for porn?

The recent Verge fiasco, which saw the Verge price increase 300% over a month due to a promised partnership with a "global organization with a vast network of high traffic sites” has come to a inveitable end. Upon hearing the partnership with PornHub, the price of the coin had nearly halved within an hour.

Verge's crowdfunding effort technically wasn’t an ICO, but last month the developers had asked for 75 million XVG coins. While it’s admirable that they requested their own cryptocurrencies instead of the traditional Bitcoin or Ethereum (though Verge is mostly acquired on exchanges where you trade your big cryptocurrencies), it was hard not to look at the initiative with a grain of skepticism. The announcement was worded in a mysterious, elusive, yet positive and promising way which implied that you may be partaking in something massive.

Buy The Rumour, Sell The News

The PornHub partnership certainly didn’t erect the candlesticks, and the price had a somewhat flaccid performance, nearly halving within an hour after the announcement.

The “Buy the rumors, sell the news” principle, which had already been mentioned in the technical analysis, applies in the case of Verge. High volatility was already expected, but lots of hopeful investors thought the mystery announcement would bring about the largest cryptocurrency collaboration to hit the market.

Verge XVG partner

Who Pays For Porn?

PornHub, Brazzers, and the entire members of the MindGeek conglomerate really are big players of the internet and run multi-billion dollar businesses. However, the biggest problem can be found in the business model itself: these websites make most of the money from advertisements and affiliate programs, not membership purchases. As many Twitter users have already pointed out, nobody really pays for porn. 

Verge XVG partner

Sure, the prospect of getting involved into this new and exciting world of cryptocurrencies is great for a business like PornHub and to them it’s nothing but free publicity in the tech world. The fundraiser that the Verge developers have undergone must have financed the integration of payments, the cheesy YouTube video which hyped the partnership in a strangely futuristic way, and all the subsequent media campaigns which hype Verge as the first crypto to become part of a huge payments deal (it’s rumored that Asa Akira, Bridgette B, and Alex Lynx will be a part of the high-profile activation campaign in Silicon Valley and New York). 

But its unlikely to increase the demand for XVG unless Verge fans deliberately start purchasing PornHub Premium memberships just to prove their point, which doesn’t do much good to the world of cryptocurrencies.

Had the partner been Amazon, eBay, Netflix, or any big retail website which has an economic model that’s exclusively based on sales, it would have been a huge deal. But as long as the largest majority of people simply watch porn for free and contribute only to the ad revenue, this partnership is just another dose of hype which paves the way for the real upcoming partnerships.

But hey, what do we know? The Litecoin founder Charlie Lee seems to also be interested in making Litecoin a payment option on PornHub. But unlike the Verge guys, if the partnership comes true, the Litecoin Foundation won’t pay a single dime and just be happy that their coin has found a new utility among the others already available.

OKEx's OKB Token Price Could See Impressive Growth, Blockchain Investment Firm Predicts

Shinobi Capital, a blockchain investment firm that’s invested in several early-stage start-ups, has predicted the price of OKEx’s OKB token could grow by over 1,500% until 2020.

According to a recently released report, Shinobi Capital sees the price of the OKB token, which can currently be used to settle trading fees, enter token-listing pools, and get rewards, skyrocket from the $1.8 its currently trading at to as much as $30 by 2020.

This, as the firm believes exchange tokens are going to be the “powerhouse of the development of the digital asset market and even blockchain technology,” according to its founding partner Jason Hill.

Shinobi Capital’s report reads:

…(I)t is expected that by the end of 2020, the price of OKB will reach USD30.75 and its market capitalization will be about USD7.068 billion. There is a significant growth lag in OKB at this stage, and the potential of price growth needs to be further released.

The report’s look into the cryptocurrency exchange’s token pointed out two important factors regarding its future performance. These were the overall state of the cryptocurrency ecosystem, OKEx’s buyback and token burning program, and the development of its OKChain blockchain.

Currently, OKB has various applications. According to the cryptocurrency exchange’s website the token’s can benefit from it through its trading platform by getting access to designated merchant privileges like better liquidity, having discounted fees on OKEx, and receive feed collected on a “Happy Friday Program” that sees OKEx share 50% of the fees it collects every Friday with OKB holders.

In the future, OKB holders will also have access to OKEX’s decentralized cryptocurrency exchange OKDex. These use cases have helped the token’s price grow over 170% this year, from $0.66 to little over $1.8 at press time.

Hill added that following the launch of various tokens through initial exchange offerings (IEOs) in the first half of this year, the market is ready for a new bull run. He stated:

OKB, as a market leader of exchange tokens, is also welcoming its own uptrend. Backed by a number of use cases and a large user base of OKEx, OKB has demonstrated a huge potential of growth.

Shinobi Capital’s report also goes into other major blockchain platforms, including EOS, Binance’s BNB, and TRON, by establishing a comparative evaluation model between them and the OKB token.

As reported on CryptoGlobe, OKEx itself published a blog post in April of this year arguing that while bitcoin isn’t cash, it could serve as a better store of value than gold. Per the exchange, a store of value is worth “what people are willing to pay for it.”

 

Important information: please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.