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Masquerade is exploiting girls who are desperate to make it in this industry. They offer a fanbase 100,000s large, beautiful avatars that put nijisanji/hololive to shame, and a presumably very high salary. I don't believe any of the girls actually want to be camwhores though - they just want to be vtubers. They reluctantly create adult content, not because they enjoy it, but because being in masquerade is worth it.
>1st generation
All 3 girls are ex-pornstars. They're already broken, they've all sold their bodies for money. For whatever reason, Mokatan felt that she needed to escape her life without a trace. Lovepie was the unpopular one, completely overshadowed by the other two members. She was relegated to being bonus fap fuel for anyone who joined the online salon. I can't imagine how that must have felt, but after months of irregular streaming she also quit.
>2nd generation
I know very little about Eru, except that she also suddenly quit without saying much. Alice is paranoid about her face being seen in a reflection anywhere. She has been demonetized twice, she has had to delete most of her videos, and her channel growth has stopped completely because she was too lewd for yt-kun.
>3rd generation
Supika fit right in. As for the other girls... both of them cancelled their october live-action and seemed uneasy about it. Meru finally did one and quit masquerade 2 streams later. Tesla has done 3 asmr streams and 0 lewd streams since she joined. She has made no adult content at all since joining.