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by il 2690 days ago
The main value of token compensation is liquidity. People frequently underestimate how long it will take until exit and their equity becoming cash.

Tokens for a good project are liquid immediately on numerous exchanges, and likely will be worth at least something. Don't neglect the time value of money.

1 comments

There's no such thing as a free lunch, though. In the case of token compensation, it's only liquid if you can easily find another buyer, and the main thing that would be driving the ease of finding a buyer for tokens right now is that there are so many people who are eager to buy literally anything that smells like crypto. So, yeah, it may be easier to dump in the short term, but in return you end up with an additional way for the cash value of your compensation to be driven to zero. Actually, make that three, because thinking about how future SEC activity could impact this sort of thing is the stuff that headaches are made of.

That might not be a consideration at all if the company's chances of long term success isn't a part of your thesis for taking a job there. But why would you take a job at a company that you don't expect to be successful?