Tokens, not Equity, please.
Some quick musings from Opyn's raise and what it signals moving forward
Earlier today, DeFi startup Opyn announced that they closed their $2.16m raise from investors such as Dragonfly and Coinbase Cartel alum. Coindesk article available below: https://www.coindesk.com/defi-hedging-startup-opyn-raises-2-16m-from-dragonfly-capital-1kx
The release itself is pretty sparse on details but I found the last paragraph particularly interesting:
“This release will include margining for capital efficiency, enable options spreads and combinations positions, and create the infrastructure to add governance down the line,” co-founder Alexis Gauba told CoinDesk. The update should be released later this year.
“Add[ing] governance down the line” can essentially be translated into “we’re launching a token soon”. It’s great to see the team to have made the progress they’ve made but what really stood out to me was the a reflection of the consensus of what "the right thing to do” is highly subjective based on the time period you exist in crypto. What do I mean by that?
The Best Time for Tokens
Taking a drip down memory lane, in late 2018 and the entire 2019, saying you had a token was basically looked down on and going with equity was “the right thing to do”. Teams were consistently looked down for even entertaining the idea of a token was bad. Equity was supposedly meant to accrue value since the whole token thesis didn’t play out. Throughout that time I always kept going back to the following blog post from Chris Burniske:
https://medium.com/@cburniske/the-best-time-to-buy-build-tokens-d14ebe7acbd3
It’s remarkable how accurate the post is and also some foresight into what may lie ahead. Without trying to paraphrase the entire article here’s the key paragraphs you should take note of
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