[rangersanger]

>this was just a way to pay employees with their loan

This feels like a more complex, insidious version of company scrip. At the end of the day, you’re getting paid in fake company money that’s worthless if they go belly up.

[onlyrealcuzzo]

It is not worthless! That's typical startup equity (common stock for employees at least).

The whole point is you're in debt (against worthless equity). It's negative worth!