The company behind Vice Industry Token (VIT), a cryptocurrency created for the porn, gambling and cannabis industry, is being sued by Playboy Industries for breach of contract.
Los Angeles Times reports that a lawsuit against Global Blockchain Technologies was filed at the Los Angeles County Superior Court for fraud and breach of contract. Beverly Hills-based Playboy Industries is seeking compensation and punitive damages.
Global Blockchain Technologies formed an agreement with Playboy back in April to enable blockchain-based payments in VIT tokens for the companies adult services. Now, Playboy claims the Canadian blockchain developer has failed to integrate VIT tokens into Playboy’s online platforms and hasn’t paid an agreed $4 million contractual fee.
In May a further announcement was made regarding the creation of a digital wallet designed specifically for Playboy. The wallet was to be used with Playboy’s online media portal Playboy.tv and was planned for release before the end of 2018.
Vice Industry Token (VIT) gained a significant market capitalization after its launch back in April, quickly garnering a $7 million valuation. Since then, however, the coin has dropped in value to slightly above $1 million. While Global Blockchain Technologies claims the lawsuit is frivolous and a “normal dispute” between firms, it seems likely the company lacks the funds to back its initial promises.
With the cryptocurrency market facing one of its biggest downturns in recent years, smaller coins and ICO’s are taking the brunt of the damage. Before this bear market is over it’s likely we’ll see a number of well-intentioned but badly planned projects go south.
Image From Shutterstock