Understanding SpankPay’s Shut Down: What Happened and What Comes Next?

03/21/2023 03:12 • Crypto & Markets • 98 views

On March 21, it was announced that SpankPay, a cryptographic payment service owned by Spankchain, would shut down after its upstream payment processor, Wyre Payments, terminated its agreement with the company.

SpankPay, a cryptopayment service owned by Spankchain, announced termination of operations

If you’ve been following the crypto industry, you may have heard about SpankPay, a payment service owned by Spankchain. However, on March 21, 2021, news broke that this service would be shutting down. In this article, we’ll look at what happened to SpankPay, the reasons behind its shut down, and what the future holds for Spankchain.

The Background of SpankPay

Before we delve into the shut down, let’s take a look at the origins of SpankPay. It was launched in 2018 by Spankchain, a company that aimed to create a decentralized platform for the adult entertainment industry. With SpankPay, users could make payments without having to reveal their identities or deal with traditional financial institutions. It was positioned as a novel solution to the problems that adult content creators face when using regular payment processors.

Why Did SpankPay Shut Down?

On March 21, 2021, Wyre Payments, an upstream payment processor for SpankPay, announced that it was terminating its agreement with the company. This meant that SpankPay could no longer process payments, effectively shutting down the service. Wyre Payments cited compliance issues as the reason behind the termination, but did not go into specifics.
The news of the shut down was met with some surprise, as Spankchain had not given any indications that anything was amiss. However, it’s worth noting that Spankchain was not the only crypto-related company to experience trouble with payment processors. The adult entertainment industry has always been a fraught space, with traditional financial institutions being hesitant to work with it. This has led to many businesses in the space turning to unorthodox methods to process payments.

What Does the Future Hold for Spankchain?

The shut down of SpankPay is undoubtedly a blow to Spankchain, but it’s not the end of the line for the company. In a statement following the shut down, Spankchain stated that it was “already exploring alternative options for continuing the SpankPay service.” It’s clear that the company is determined to find a way to continue its services, as it sees itself as providing essential solutions to the adult entertainment industry.
However, it’s worth noting that there are challenges to be faced in finding alternative payment processors. Even non-crypto-related companies in the adult entertainment industry have faced difficulties in this area. Additionally, the regulatory landscape around crypto payments is still uncertain in many jurisdictions, making it difficult to find partners who are willing to take on the risks.

FAQs

1. What was SpankPay, and how was it different from other payment services?
SpankPay was a cryptocurrency-based payment service that was focused on the adult entertainment industry. It allowed users to pay for content without revealing their identities, which was a crucial selling point in this industry.
2. Why did Wyre Payments terminate its agreement with SpankPay?
Wyre Payments cited compliance issues as the reason for terminating its agreement with SpankPay. However, it did not give any specific details about the compliance issues.
3. What’s next for Spankchain after the shut down of SpankPay?
In a statement, Spankchain said that it was exploring alternative options for continuing the SpankPay service. However, finding alternate payment processors in the adult entertainment industry can be challenging, so it remains to be seen what the future holds for Spankchain.

Conclusion

The shut down of SpankPay is a reminder of the challenges that crypto-related companies face when trying to operate in traditional industries. However, it’s also a sign that the industry is still evolving, and that companies are willing to tackle these obstacles head on. It will be interesting to see what solution Spankchain comes up with, and how it will impact the future of the adult entertainment industry.

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