In this week’s Fail of the week, we are going to take a look at a famous partnership that shook the cryptocurrency community and the aftermath of it so far. The partnership was unveiled on April 17th, after months of speculation by the community. The partnership was between the privacy cryptocurrency Verge (XVG) and the adult industry giant, Mindgeek. The collaboration was speculated and welcomed by the Verge community as a leap forward for cryptocurrency implementation. If you want to read more about the Verge partnership, click here.
Famous Verge partnership with Pornhub
This partnership includes collaborations between Verge and three of Mindgeek’s adult businesses: Pornhub, Nutaku and the Canadian production company Brazzers.
Pornhub had announced in a blog post:
“Here at Pornhub, we have always strongly valued privacy and innovation. Over the past couple of years, we have launched Virtual Reality so we can provide our users with the most immersive experiences possible. Also a Bug Bounty program which offers monetary rewards to security researchers, for finding bugs on our platform. And HTTPS, so we can provide the most secure user experience. Our acceptance of Verge is an affirmation of our dedication to privacy and innovation, which recently has caused much concern and been at the forefront of all tech consumers’ minds… We are extremely excited to offer our fans the ability to use crypto and think Verge, with its focus on anonymity and security, is the best option – whether for privacy, convenience or both!”
The Verge partnership was kept in mystery and was anticipated by the community. Verge had promised to reveal a big partnership with a company that has a vast network of high traffic sites that will utilize the donations to initiate a massive marketing campaign, if their crowdfunding campaign was successful. Verge’s team further continued that the mystery partnership “could be the biggest cryptocurrency adoption ever”.
The crowdfunding was successful and they did reveal the collaboration on their Twitter page. They announced that the world’s biggest porn site will be accepting the cryptocurrency as payment for their products and services. The partnership with these massive companies sparked hope into all Verge enthusiasts and a lot of trust was built. Of course, all the hype was seen on the trading charts, as Verge’s trading pairs with Bitcoin, Fiat currencies and Ethereum spiked with more than 100% increase.
Where is Verge after the collaboration?
The creator of Litecoin, Charlie Lee used his own Twitter to make fun of the partnership with a little sarcastic note. He said:
“Turns out that Verge’s super expensive partnership was PornHub. @Pornhub, enough with the foreplay. Time to accept the real cryptocurrencies like Bitcoin, Litecoin and Monero.”
As if Charlie Lee knew what the outcome was going to be. The partnership did not help Verge at a first glance. What actually happened was a huge pump and dump scheme that happened right before the Verge partnership was announced, from which the cryptocurrency is still recovering. There are two ways, we can observe the situation: Verge’s price in USD or in Bitcoin/Ethereum, as the cryptocurrency trading pair is the main factor in the Price making.
You can see on the chart above, a clear pump and dump figure on the left. Before the partnership was revealed, Verge was trading around 0.085$. Subsequently after that, the coin exploded and was trading at one moment for 0.13$. Two days later, the coin plummeted below the 0.06$ mark. The interesting part was that during the dip, Verge had an enormous volume, but ultimately this did not help the cryptocurrency.
The cryptocurrency fell for a week or more in a period, when all cryptocurrencies were increasing in prices. On the image below you can see Verge’s price in Ethereum. Since then the currency fell a lot in fiat currency price, but has fallen by more than 50% on Ether price and around 50% in Bitcoin price. Verge has consolidated in its bottom range and looks dormant for now.
Of course, things can change
It is safe to say that the Verge partnership did not work miracles for the project. More like it pushed them from the spotlight, into obscurity. Or their price and volume at least. It is a win for all Pornhub and Brazzers users for sure, as now they have the freedom to purchase services with cryptocurrencies. Of course, it might be too early to judge and this might have been the plan all along.
Verge has yet to prove me wrong. Verge was a contestant on another Coinstaker series, Shitcoin of the Week where we expose some flaws of the Project. Some of them are hilarious and if you want to read the article click here.
Also click here to read last week’s Fail of the week to read about the Vertcoin Twitter account hack and how they tried to scam people.
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