According to CoinDesk, adult websites often face significant challenges when dealing with mainstream payment processors, which impose high fees and make it difficult for these businesses to connect to the conventional banking system. This economic purgatory has led Crass Kitty, the pseudonymous founder of the AI-powered sexting website MyPeach.AI, to turn to cryptocurrency as a solution.
MyPeach.AI users may not realize that when they interact with AI-generated clones of OnlyFans models or purchase personalized AI-generated images, they are indirectly buying stablecoins. These stablecoins are used by MyPeach.AI to cover operational costs, including payroll, AI content generation, and payments to real-life models who have allowed the website to train its AI on their images, voices, and personalities. Payment processors typically charge a 3-5% fee for card transactions involving crypto purchases, but for adult entertainment, this fee can soar to 10-15%, making it a costly affair for businesses like MyPeach.AI.
Kitty explains that the high transaction fees imposed by payment processors on adult entertainment purchases create a strong incentive to adopt cryptocurrency. By using stablecoins, MyPeach.AI can mitigate these exorbitant fees and ensure smoother financial operations. However, the transition to crypto is not without its challenges. Kitty's previous venture, a marketplace for buying and selling NFTs of porn stars, revealed that many users find the process of setting up wallets and acquiring tokens cumbersome.
Despite these challenges, Kitty is optimistic about the potential of combining AI and crypto. MyPeach.AI incentivizes users to engage with AI personas by paying them with PEACH tokens, which can be used to obtain AI-generated images. If users lack sufficient tokens, they can top up using a credit card, which indirectly involves purchasing stablecoins. This approach helps circumvent the high fees imposed by traditional payment processors.
Kitty notes that while a few banks are willing to work with crypto companies and adult entertainment businesses separately, none seem willing to support crypto-powered adult entertainment businesses. By keeping most of their treasury on-chain, MyPeach.AI can avoid the risk of losing funds if their banks decide to shut them down.
Kitty has been developing MyPeach.AI at the mtnDAO hacker house in Salt Lake City, where she has found the live feedback from the community invaluable. The collaborative environment at mtnDAO has provided a refreshing change from her usual work-from-home setup in Seattle, allowing her to refine and enhance the platform based on real-time input.
Catherine
