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Playboy’s “Rabbitars” NFTs result in $4.9M loss
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 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 dropped significantly, leading to a loss of $4.9 million, according to an SEC filing. Last December, the value of ETH received from the NFT sale was only $327,000. Playboy NFTs are classified as “indefinite-lived intangible assets”, which become subject to impairment when their fair value falls significantly below their book value over a specified period.
ETH’s value has fallen by more than 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 have a major impact on Playboy’s earnings and balance sheet value. , while positive exchange rate changes will only benefit earnings if the company sells its Ethereum holdings at a profit.
Playboy’s Legacy jumped into NFTs with the Rabbitars Collection
The Playboy NFT Rabbitars Collection was launched in October 2021. It featured 11,953 unique 3D rabbit figures, or Rabbitars, inspired by the brand’s iconic logo. These characters were generated using over 175 attributes, including fur, ears, facial expressions, clothing, accessories, and occupation-related attributes. Some of the rarest Rabbitar features 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 significant event. The iconic brand also released an NFT collection that represents its rich history. The Playboy 69th Birthday experience in the Sandbox was a 6.9-day event that started on December 12th.
This celebration featured operational, playable Playboy Sandbox characters. These included Playboy Rabbitars and Playboy Party People, as well as iconic characters from Playboy’s past and present. DJ BLOND:SH lit up the dance floor, while players were given the opportunity to play to earn special rewards.
