When banks like JP Morgan Chase and Bank of America do provide service to adult entertainment websites, they often charge high rates, because of a high frequency of “chargebacks,” when a customer disputes a charge on their account statement and claims the charge was made fraudulently.
Cryptocurrency, on the other hand, is immutable, so it can’t be disputed or taken back. Once a payment is made, it’s accounted for on the distributed ledger and is set in stone. Adult entertainment sites that accept cryptocurrency, instead of payment from traditional banks, don’t have to pay high fees from those cryptocurrency platforms and therefore don’t pass along the cost to the performers who post their content on their sites.
LaRue was one of the early adopters of SpankChain, a website on which adult entertainers can post explicit pictures and videos and get paid for their work in cryptocurrency. The company launched BOOTY ERC20, which has a lower volatility in value than a cryptocurrency coin like Bitcoin or Ether. It also recently launched Spank Pop Shots, where customers can buy one-of-a-kind digital, erotic pictures of models and performers called nonfungible tokens (NFTs).
But cryptocurrency still remains a mystery to many porn performers looking for alternative banking solutions.
Sage the Flame, a performer based in Atlanta, started out in adult entertainment by posting erotic pictures on Snapchat. She handled money through PayPal, but the company eventually flagged her account for suspicious activity.