This week, Facebook, in collaboration with many industry giants announced Libra, a new Stablecoin. Libra joins the more than 200 hundred stablecoin projects already announced. With all the attention on the behemoths, I’d like to shine a light on the long tail. Many of these projects are just as sexy - one literally so: BOOTY. BOOTY is the native stablecoin of SpankChain, a payment platform for the Adult industry. BOOTY is carving out a niche for itself, in the X-rated world of Cam Girls and their customers. Spankchain seeks to empower sex workers and reduce exploitation of sex workers. Many of its customers are motivated to use the platform, and its currency because they identify with the mission and it’s community. As Ameen Solomeni, a founder of SpankChain has said;
“We've believed from the beginning that tokens are imbued with the values of the communities they serve, and we believe that our two-token SPANK / BOOTY economy is more aligned with the ideals of freedom, sex positivity, and financial inclusion.”
Ameen is expressing one of the great promises of cryptocurrency, the ability to use currencies as a glue for communities, not just nation states. One can imagine hundreds of different communities creating their own coins, just like BOOTY. Each community that does this brings more people into the cryptocurrency world and expands the crypto economy - but only if these currencies can be seamlessly unified into a single market.
Currently, holders of BOOTY can only use it inside the SpankChain ecosystem. Cam Girls need to convert it to something else to be able to spend their earnings. New users need to find a way to purchase BOOTY to use the service. These entry and exit barriers mean that the SpankChain ecosystem is siloed and smaller than it could otherwise be.
Imagine if anyone with any stablecoin could seamlessly make payments to SpankChain performers. Imagine those same performers could frictionlessly spend their earnings anywhere stablecoins are accepted. A decentralized aggregator and distributor like CementDAO allows this while still having all the actual payments on SpankChain occur in BOOTY, thus supporting the SpankChain ecosystem.
On the other end of the spectrum from the niche community of BOOTY is the massive global footprint of Facebook, with 2 billion users and millions of businesses. For SpankChain this can be a huge opportunity if they are able to leverage that massive user-base to grow dramatically. However, the opportunity is not just SpankChain’s, Facebook too will benefit. Facebook would like to see Libra adopted as a currency but the size of their brand means they cannot directly support anything as risque as SpankChain. Such a limitation would be a problem for the adoption of any currency - currency is valuable because it is universally accepted as a means of payment - even an ecosystem as large as Facebooks’ is not nearly large enough to be universal. Users will chafe at frictions and restrictions to using their money. Facebook already are viewed with suspicion for tracking and eliminating their users. This will be compounded when it hits users directly in the pocket through financial data surveillance.
A decentralized platform like CementDAO allows Facebook’s coin to remain family-friendly while still being plugged in and useable with the rest of the global economy. Facebook isn’t the only ecosystem with a giant user base coming to play. Telegram, Google, Wechat, not to mention global banks and even churches are all going to be watching closely and some have already deployed their own coins. Facebook users will want to send funds to their friends on Telegram or Venmo and Cement is the way that they will be able to do so.
With the advent of stablecoins, cryptoassets are finally stable and familiar enough to be used as currency. With CementDAO, these tokenized currencies can also achieve the ubiquity that will allow them to be used currencies.