Playboy has reported a staggering $4.9 million loss on its non-fungible token (NFT) payments, according to a recent filing with the US Securities and Exchange Commission (SEC). The losses stem from the company’s acceptance of Ether (ETH) as payment for its “Rabbitars” Playboy NFT collection, which were launched in 2021 during a crypto market boom.
Playboy NFT $4.9M Crypto Plunge: NFT Losses Sting
The value of Playboy’s ETH holdings has decreased significantly, leading to a $4.9 million impairment loss, according to a SEC filing. As of December last year, the value of the ETH received from the NFT sales was a mere $327,000. The Playboy NFTs are classified as “indefinitely-lived intangible assets,” which become subject to impairment losses when their fair value falls substantially below their carrying value during a specific period.
ETH’s value has dropped by over half since the company sold its Playboy NFTs, with the market price of one ether ranging from $964 to $3,813 during the year ending December 31, 2022. Consequently, negative market price fluctuations could greatly impact Playboy’s earnings and carrying value, while positive price changes will only benefit earnings if the company sells its Ethereum holdings at a gain.
Playboy’s Legacy Leaped into NFTs with Rabbitars Collection
The Playboy NFT Rabbitars Collection launched in October 2021. It featured 11,953 unique 3D rabbit characters, or Rabbitars, inspired by the brand’s iconic logo. These characters were generated using over 175 traits, including fur, ears, facial expressions, apparel, accessories, and occupation-related characteristics. Some of the rarest Rabbitar traits pay homage to culturally significant aspects of Playboy’s art and editorial history.
Playboy Is No Stranger to Web3
In December 2022, Playboy celebrated its 69th birthday in the Sandbox metaverse with a momentous event. The iconic brand also released an NFT collection representing its rich history. The Playboy 69th Birthday experience in the Sandbox revolved around a 6.9-day event beginning on December 12th.
This celebration featured operational, playable Playboy Sandbox characters. These included Playboy Rabbitars and Playboy Party People, as well as iconic figures from Playboy’s past and present. DJ BLOND:SH ignited the dance floor, while players had the opportunity to play-to-earn special rewards.
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A seasoned cryptonaut, António Madeira is a blockchain analyst based in Lisbon, one of the established blockchain capitals of the world. Having started his career in the cryptosphere in 2015, António was drawn to the potential for social, political, and economical paradigm shifts that Bitcoin, DeFi, and NFTs proposed.