OnlyFans Stock was founded in 2016 by adult industry veteran Tim Stockley and Fenix International Limited, a private organization in London. Stockley stepped down as CEO at the start of 2022. There have been over $3 billion in payments made to creators.
Adult performers and social media influencers monetize their fan bases by putting high-resolution images and videos behind paywalls. Users can purchase additional features and personalized content. Is Onlyfans on the stock market? Is Onlyfans planning its IPO? If so, how will you invest?
Continue reading to find out more!
How does OnlyFans Generate Revenue?
OnlyFans’ success is mainly due to the company’s business model. Regardless of the site’s attraction to the adult entertainment sector, OnlyFans stock returns authority to the creators. The platform’s popularity had soared since April 2020, when Beyoncé highlighted it in the song “Savage.”
As of August 2022, more than 170 million users had joined the platform globally, with more than 1.5 million actively providing content for the network. According to the New York Times, OnlyFans charges a flat 20% price and profits roughly 12%. The creator can set the price at whatever they like and keep 80% of the revenue.
By eliminating advertising and intermediaries, the firm’s concept allows artists more control over their content and company. Its appeal extends beyond the sexual content industry, with users including professional athletes, chefs, singers, celebrities, health and spiritual experts, comedians, fitness gurus, and cosmetics artists.
On August 19th, 2021, the policy to prohibit “any content featuring sexually explicit activities” was announced. However, optional naked photography and videography will be permitted. It reversed its earlier decision on August 25th.
What are the Debates Around Onlyfans Stock?
Despite its success, OnlyFans stock is not without its odd controversies. Although there are no restrictions on who may access the site, its popularity in the adult content industry has made it well-known.
OnlyFans has received some criticism for this from its adversaries. On the other hand, many people in the sex industry consider OnlyFans a safe alternative since they have total editorial control over the content they publish. Because of its established image, the firm seriously contemplated forbidding any sexually explicit material. This, however, resulted in a massive exodus of content creators whose livelihoods depended on disseminating mature products.
As the argument proceeded, the fear of losing so many people caused them to reconsider. OnlyFans places great importance on its community. Hence the firm chose to continue working with people in the adult entertainment industry.
There are several specialty markets within the OnlyFans group. Aside from the adult entertainment industry, creators are in every other important profession. You may follow your favorite YouTubers, visual artists, and podcasters on OnlyFans. In recent years, OnlyFans has gained popularity among normal celebrities. Reality stars and singers were among the most valuable consumers in 2021.
This demonstrates that the website is shifting away from its predominantly voyeuristic orientation. It is not required to work in the adult industry to use the site, but the high pay rates and openness to collaboration make it a popular choice for those who do.
Is OnlyFans Stock on the Stock Market?
Fenix International Limited is the only owner and operator of OnlyFans. The creator, Tim Stokely, and adult industry veteran Leo Radvinsky, an adult webcam business entrepreneur who bought a controlling position in OnlyFans stock in 2018, are the key stockholders.
Due to the mature nature of its founders, the company has yet to raise money from venture capital companies. Investors may become increasingly interested when the firm develops into other genres. OnlyFans is seeking venture capital at a valuation of more than $1 billion, according to Bloomberg on June 16th, 2021.
On August 19th, 2021, Dan Primack of Axios claimed that the firm failed to acquire venture capital investment owing to the explicit content posted by producers. Some venture capitalists are “forbidden from investing in sexual material.” On March 29th, 2022, Axios reported that OnlyFans Stock is looking for a SPAC partnership.
How to Purchase OnlyFans Stock
There is no indication that OnlyFans is planning an initial public offering. An initial public offering is likely to be years away if it occurs. In light of this, I’ll go through the three ways you might potentially buy OnlyFans Stock:
Buy OnlyFans Stock Following the IPO or SPAC
Ordinary investors will find it easier to purchase OnlyFans stock after SPAC, or the IPO has closed, as doing so during the IPO period may be challenging. Except if your brokerage account exceeds $1 million and your broker receives IPO allocations regularly, you won’t be able to participate in highly sought-after initial public offerings (IPOs).
Stocks are occasionally available to patient investors at prices equal to or lower than the IPO price. However, this is not the case in all circumstances. Despite overwhelming predictions, Uber’s stock price fell on the day of its IPO.
Likely, the returns will not be worth the time and effort invested in obtaining IPO shares. Furthermore, you may put in a lot of effort to get shares just to receive a little allocation, lowering your prospective gains. Even though IPOs can result in one-day payments of 20% or more, the most significant earnings will arrive in the decade after the IPO if the business is inventive. Take, for example, Amazon, Netflix, or Tesla. Even if you waited years after the initial public offering (IPO) to acquire the shares, you would have profited more than 1,000%.
For patient investors interested in acquiring OnlyFans stock, opening a stake after the first public offering and consolidating if the price falls is a viable plan. Day traders may attempt to gain IPO shares to profit quickly.
Allow a Broker to Assist You
Ambitious investors may begin planning for the future OnlyFans stock IPO. Four factors influence your capacity to acquire shares in an initial public offering:
- IPO Optimism
- Your eligibility and the broker you use
- The AUM of your broker (Assets Under Management)
- The propensity of shareholders to trade often
The demand for IPOs influences the chances of obtaining IPO shares. The most well-known IPOs are the most difficult to enter. Most internet brokers do not sell IPO shares. Check with the manufacturer to ensure it fits yours. Fidelity and Charles Schwab have minimum qualification limitations and trading violation fines. Brokers must sub-allocate any IPO underwriter-allocated restricted shares, even if they qualify. We can surmise that the wealthiest investors are given precedence without complete information.
A quick return on investment from an IPO is one way that giant underwriters like Morgan Stanley reward their most important clients. Even if you join a broker that offers IPO access, there is no guarantee that you will receive shares in an IPO, especially if there is high demand. As a result, the optimum time to acquire the shares is after the IPO, when trading has commenced.
Purchase OnlyFans Stock In Secondary Markets Before The IPO
Those participating in the early phases of a firm, such as the founders, early employees, and investors, frequently confront a difficult scenario. This is due to their central ownership in a privately owned firm. Because of their stock holdings, these investors’ net worth may be in the millions, yet their assets are illiquid because their shares never trade on an exchange.
This might be a concern if OnlyFans gives employees stock in the holding company. The original owners may try to sell to people at some point. Early investors and employees have numerous possibilities for selling their shares before an IPO. Linqto, EquityZen, and Forge are just a few examples. These platforms improve a rare commodity’s marketability. Accredited investors who use these websites may try to buy shares in these companies when they go on sale.
Investors face a significant risk since the company’s financials have not been publicly disclosed. Hence the shares are only available to approved investors.
OnlyFans has become one of the most contentious online social networks. Another advantage is that it is one of the most profitable for producers of all kinds. As a result, investing in the firm should be explored. OnlyFans stock has made no announcements concerning an IPO, and the firm is not currently listed publicly. However, the company’s inability to recruit outside investors signals an initial public offering (IPO) is imminent.