The Token Economy

Recruiting and working in the web3 space is an amazing opportunity, and I have to say, we love it at?Austin Werner! There are many benefits to it, but one that I'm particularly torn on is 'Token release'. Is it better to have a token before a product is built and before a product-market fit is achieved,?or?is it right to build the product and then release a token?

From where I sit, the main reason why crypto firms release a token before their product gains 'market fit' is to raise funds and to try and build a large user base. By releasing a token before the product is fully developed, a business wants to attract early adopters willing to take a risk, invest in the project, and talk about it. I totally get this, as it can provide the firm with the platform and capital necessary to develop its idea and grow quickly.

BUT… most of the time, Crypto firms have already raised?CASH?privately and when they release a token early, it generally only represents a very small part of their business's equity – and you aren’t told that when you invest. The main?disadvantage?of releasing a token before the product is ready is that the token may not have any?real-world value or use. If the project fails, the token will become worthless, investors may lose their money, the crypto community takes the?L, and yet another product comes and goes.

So...

When it comes to releasing a token before a product is fully developed and has achieved product-market fit, opinions vary. On the one hand, crypto firms may use releasing a token to raise funds and build a large user base, which can provide them with the capital needed to develop the product and grow quickly. On the other hand, tokens may not have any real-world value or use if the project fails, resulting in investors losing their money and the crypto community taking the hit.

Which option is right for a given project? It depends on the specific circumstances and goals of the firm, right?

Ultimately, those responsible for a project must weigh the pros and cons of both options and decide what makes the most sense for their venture. What do you think? Are you in favour of releasing a token early or waiting until a product is ready to use?

#cryptohiring #cryptojobs #tokeneconomy #ethereum #eth #recruitment #web3 #austinwerner