Why I quit a $500K job at Amazon to work for myself
I quit my 8-year Amazon job last week. I wasn't motivated to do another year despite promotions, pay, recognition, and praise.
In AWS, I built developer tools. I could have worked in that field forever.
I became an Amazon developer. Within 3.5 years, I was promoted twice to senior engineer and would have been promoted to principal engineer if I stayed. The company said I had great potential.
Over time, I became a reputed expert and leader within the company. I was respected.
First year I made $75K, last year $511K. If I stayed another two years, I could have made $1M.
Despite Amazon's reputation, my work–life balance was good. I no longer needed to prove myself and could do everything in 40 hours a week. My team worked from home once a week, and I rarely opened my laptop nights or weekends.
My coworkers were great. I had three generous, empathetic managers. I’m very grateful to everyone I worked with.
Everything was going well and getting better. My motivation to go to work each morning was declining despite my career and income growth.
Another promotion, pay raise, or big project wouldn't have boosted my motivation. Motivation was also waning. It was my freedom.
Demotivation
My motivation was high in the beginning. I worked with someone on an internal tool with little scrutiny. I had more freedom to choose how and what to work on than in recent years. Me and another person improved it, talked to users, released updates, and tested it. Whatever we wanted, we did. We did our best and were mostly self-directed.
In recent years, things have changed. My department's most important project had many stakeholders and complex goals. What I could do depended on my ability to convince others it was the best way to achieve our goals.
Amazon was always someone else's terms. The terms started out simple (keep fixing it), but became more complex over time (maximize all goals; satisfy all stakeholders). Working in a large organization imposed restrictions on how to do the work, what to do, what goals to set, and what business to pursue. This situation forced me to do things I didn't want to do.
Finding New Motivation
What would I do forever? Not something I did until I reached a milestone (an exit), but something I'd do until I'm 80. What could I do for the next 45 years that would make me excited to wake up and pay my bills? Is that too unambitious? Nope. Because I'm motivated by two things.
One is an external carrot or stick. I'm not forced to file my taxes every April, but I do because I don't want to go to jail. Or I may not like something but do it anyway because I need to pay the bills or want a nice car. Extrinsic motivation
One is internal. When there's no carrot or stick, this motivates me. This fuels hobbies. I wanted a job that was intrinsically motivated.
Is this too low-key? Extrinsic motivation isn't sustainable. Getting promoted felt good for a week, then it was over. When I hit $100K, I admired my W2 for a few days, but then it wore off. Same thing happened at $200K, $300K, $400K, and $500K. Earning $1M or $10M wouldn't change anything. I feel the same about every material reward or possession. Getting them feels good at first, but quickly fades.
Things I've done since I was a kid, when no one forced me to, don't wear off. Coding, selling my creations, charting my own path, and being honest. Why not always use my strengths and motivation? I'm lucky to live in a time when I can work independently in my field without large investments. So that’s what I’m doing.
What’s Next?
I'm going all-in on independence and will make a living from scratch. I won't do only what I like, but on my terms. My goal is to cover my family's expenses before my savings run out while doing something I enjoy. What more could I want from my work?
You can now follow me on Twitter as I continue to document my journey.
This post is a summary. Read full article here
More on Personal Growth
Nitin Sharma
3 years ago
Quietly Create a side business that will revolutionize everything in a year.
Quitting your job for a side gig isn't smart.
A few years ago, I would have laughed at the idea of starting a side business.
I never thought a side gig could earn more than my 9-to-5. My side gig pays more than my main job now.
You may then tell me to leave your job. But I don't want to gamble, and my side gig is important. Programming and web development help me write better because of my job.
Yes, I share work-related knowledge. Web development, web3, programming, money, investment, and side hustles are key.
Let me now show you how to make one.
Create a side business based on your profession or your interests.
I'd be direct.
Most people don't know where to start or which side business to pursue.
You can make money by taking online surveys, starting a YouTube channel, or playing web3 games, according to several blogs.
You won't make enough money and will waste time.
Nitin directs our efforts. My friend, you've worked and have talent. Profit from your talent.
Example:
College taught me web development. I soon created websites, freelanced, and made money. First year was hardest for me financially and personally.
As I worked, I became more skilled. Soon after, I got more work, wrote about web development on Medium, and started selling products.
I've built multiple income streams from web development. It wasn't easy. Web development skills got me a 9-to-5 job.
Focus on a specific skill and earn money in many ways. Most people start with something they hate or are bad at; the rest is predictable.
Result? They give up, frustrated.
Quietly focus for a year.
I started my side business in college and never told anyone. My parents didn't know what I did for fun.
The only motivation is time constraints. So I focused.
As I've said, I focused on my strengths (learned skills) and made money. Yes, I was among Medium's top 500 authors in a year and got a bonus.
How did I succeed? Since I know success takes time, I never imagined making enough money in a month. I spent a year concentrating.
I became wealthy. Now that I have multiple income sources, some businesses pay me based on my skill.
I recommend learning skills and working quietly for a year. You can do anything with this.
The hardest part will always be the beginning.
When someone says you can make more money working four hours a week. Leave that, it's bad advice.
If someone recommends a paid course to help you succeed, think twice.
The beginning is always the hardest.
I made many mistakes learning web development. When I started my technical content side gig, it was tough. I made mistakes and changed how I create content, which helped.
And it’s applicable everywhere.
Don't worry if you face problems at first. Time and effort heal all wounds.
Quitting your job to work a side job is not a good idea.
Some honest opinions.
Most online gurus encourage side businesses. It takes time to start and grow a side business.
Suppose you quit and started a side business.
After six months, what happens? Your side business won't provide enough money to survive.
Indeed. Later, you'll become demotivated and tense and look for work.
Instead, work 9-5, and start a side business. You decide. Stop watching Netflix and focus on your side business.
I know you're busy, but do it.
Next? It'll succeed or fail in six months. You can continue your side gig for another six months because you have a job and have tried it.
You'll probably make money, but you may need to change your side gig.
That’s it.
You've created a new revenue stream.
Remember.
Starting a side business, a company, or finding work is difficult. There's no free money in a competitive world. You'll only succeed with skill.
Read it again.
Focusing silently for a year can help you succeed.
I studied web development and wrote about it. First year was tough. I went viral, hit the top 500, and other firms asked me to write for them. So, my life changed.
Yours can too. One year of silence is required.
Enjoy!
Leon Ho
3 years ago
Digital Brainbuilding (Your Second Brain)
The human brain is amazing. As more scientists examine the brain, we learn how much it can store.
The human brain has 1 billion neurons, according to Scientific American. Each neuron creates 1,000 connections, totaling over a trillion. If each neuron could store one memory, we'd run out of room. [1]
What if you could store and access more info, freeing up brain space for problem-solving and creativity?
Build a second brain to keep up with rising knowledge (what I refer to as a Digital Brain). Effectively managing information entails realizing you can't recall everything.
Every action requires information. You need the correct information to learn a new skill, complete a project at work, or establish a business. You must manage information properly to advance your profession and improve your life.
How to construct a second brain to organize information and achieve goals.
What Is a Second Brain?
How often do you forget an article or book's key point? Have you ever wasted hours looking for a saved file?
If so, you're not alone. Information overload affects millions of individuals worldwide. Information overload drains mental resources and causes anxiety.
This is when the second brain comes in.
Building a second brain doesn't involve duplicating the human brain. Building a system that captures, organizes, retrieves, and archives ideas and thoughts. The second brain improves memory, organization, and recall.
Digital tools are preferable to analog for building a second brain.
Digital tools are portable and accessible. Due to these benefits, we'll focus on digital second-brain building.
Brainware
Digital Brains are external hard drives. It stores, organizes, and retrieves. This means improving your memory won't be difficult.
Memory has three components in computing:
Recording — storing the information
Organization — archiving it in a logical manner
Recall — retrieving it again when you need it
For example:
Due to rigorous security settings, many websites need you to create complicated passwords with special characters.
You must now memorize (Record), organize (Organize), and input this new password the next time you check in (Recall).
Even in this simple example, there are many pieces to remember. We can't recognize this new password with our usual patterns. If we don't use the password every day, we'll forget it. You'll type the wrong password when you try to remember it.
It's common. Is it because the information is complicated? Nope. Passwords are basically letters, numbers, and symbols.
It happens because our brains aren't meant to memorize these. Digital Brains can do heavy lifting.
Why You Need a Digital Brain
Dual minds are best. Birth brain is limited.
The cerebral cortex has 125 trillion synapses, according to a Stanford Study. The human brain can hold 2.5 million terabytes of digital data. [2]
Building a second brain improves learning and memory.
Learn and store information effectively
Faster information recall
Organize information to see connections and patterns
Build a Digital Brain to learn more and reach your goals faster. Building a second brain requires time and work, but you'll have more time for vital undertakings.
Why you need a Digital Brain:
1. Use Brainpower Effectively
Your brain has boundaries, like any organ. This is true while solving a complex question or activity. If you can't focus on a work project, you won't finish it on time.
Second brain reduces distractions. A robust structure helps you handle complicated challenges quickly and stay on track. Without distractions, it's easy to focus on vital activities.
2. Staying Organized
Professional and personal duties must be balanced. With so much to do, it's easy to neglect crucial duties. This is especially true for skill-building. Digital Brain will keep you organized and stress-free.
Life success requires action. Organized people get things done. Organizing your information will give you time for crucial tasks.
You'll finish projects faster with good materials and methods. As you succeed, you'll gain creative confidence. You can then tackle greater jobs.
3. Creativity Process
Creativity drives today's world. Creativity is mysterious and surprising for millions worldwide. Immersing yourself in others' associations, triggers, thoughts, and ideas can generate inspiration and creativity.
Building a second brain is crucial to establishing your creative process and building habits that will help you reach your goals. Creativity doesn't require perfection or overthinking.
4. Transforming Your Knowledge Into Opportunities
This is the age of entrepreneurship. Today, you can publish online, build an audience, and make money.
Whether it's a business or hobby, you'll have several job alternatives. Knowledge can boost your economy with ideas and insights.
5. Improving Thinking and Uncovering Connections
Modern career success depends on how you think. Instead of overthinking or perfecting, collect the best images, stories, metaphors, anecdotes, and observations.
This will increase your creativity and reveal connections. Increasing your imagination can help you achieve your goals, according to research. [3]
Your ability to recognize trends will help you stay ahead of the pack.
6. Credibility for a New Job or Business
Your main asset is experience-based expertise. Others won't be able to learn without your help. Technology makes knowledge tangible.
This lets you use your time as you choose while helping others. Changing professions or establishing a new business become learning opportunities when you have a Digital Brain.
7. Using Learning Resources
Millions of people use internet learning materials to improve their lives. Online resources abound. These include books, forums, podcasts, articles, and webinars.
These resources are mostly free or inexpensive. Organizing your knowledge can save you time and money. Building a Digital Brain helps you learn faster. You'll make rapid progress by enjoying learning.
How does a second brain feel?
Digital Brain has helped me arrange my job and family life for years.
No need to remember 1001 passwords. I never forget anything on my wife's grocery lists. Never miss a meeting. I can access essential information and papers anytime, anywhere.
Delegating memory to a second brain reduces tension and anxiety because you'll know what to do with every piece of information.
No information will be forgotten, boosting your confidence. Better manage your fears and concerns by writing them down and establishing a strategy. You'll understand the plethora of daily information and have a clear head.
How to Develop Your Digital Brain (Your Second Brain)
It's cheap but requires work.
Digital Brain development requires:
Recording — storing the information
Organization — archiving it in a logical manner
Recall — retrieving it again when you need it
1. Decide what information matters before recording.
To succeed in today's environment, you must manage massive amounts of data. Articles, books, webinars, podcasts, emails, and texts provide value. Remembering everything is impossible and overwhelming.
What information do you need to achieve your goals?
You must consolidate ideas and create a strategy to reach your aims. Your biological brain can imagine and create with a Digital Brain.
2. Use the Right Tool
We usually record information without any preparation - we brainstorm in a word processor, email ourselves a message, or take notes while reading.
This information isn't used. You must store information in a central location.
Different information needs different instruments.
Evernote is a top note-taking program. Audio clips, Slack chats, PDFs, text notes, photos, scanned handwritten pages, emails, and webpages can be added.
Pocket is a great software for saving and organizing content. Images, videos, and text can be sorted. Web-optimized design
Calendar apps help you manage your time and enhance your productivity by reminding you of your most important tasks. Calendar apps flourish. The best calendar apps are easy to use, have many features, and work across devices. These calendars include Google, Apple, and Outlook.
To-do list/checklist apps are useful for managing tasks. Easy-to-use, versatility, budget, and cross-platform compatibility are important when picking to-do list apps. Google Keep, Google Tasks, and Apple Notes are good to-do apps.
3. Organize data for easy retrieval
How should you organize collected data?
When you collect and organize data, you'll see connections. An article about networking can assist you comprehend web marketing. Saved business cards can help you find new clients.
Choosing the correct tools helps organize data. Here are some tools selection criteria:
Can the tool sync across devices?
Personal or team?
Has a search function for easy information retrieval?
Does it provide easy data categorization?
Can users create lists or collections?
Does it offer easy idea-information connections?
Does it mind map and visually organize thoughts?
Conclusion
Building a Digital Brain (second brain) helps us save information, think creatively, and implement ideas. Your second brain is a biological extension. It prevents amnesia, allowing you to tackle bigger creative difficulties.
People who love learning often consume information without using it. Every day, they postpone life-improving experiences until they're forgotten. Useful information becomes strength.
Reference
[1] ^ Scientific American: What Is the Memory Capacity of the Human Brain?
[2] ^ Clinical Neurology Specialists: What is the Memory Capacity of a Human Brain?
[3] ^ National Library of Medicine: Imagining Success: Multiple Achievement Goals and the Effectiveness of Imagery
Darius Foroux
2 years ago
My financial life was changed by a single, straightforward mental model.
Prioritize big-ticket purchases
I've made several spending blunders. I get sick thinking about how much money I spent.
My financial mental model was poor back then.
Stoicism and mindfulness keep me from attaching to those feelings. It still hurts.
Until four or five years ago, I bought a new winter jacket every year.
Ten years ago, I spent twice as much. Now that I have a fantastic, warm winter parka, I don't even consider acquiring another one. No more spending. I'm not looking for jackets either.
Saving time and money by spending well is my thinking paradigm.
The philosophy is expressed in most languages. Cheap is expensive in the Netherlands. This applies beyond shopping.
In this essay, I will offer three examples of how this mental paradigm transformed my financial life.
Publishing books
In 2015, I presented and positioned my first book poorly.
I called the book Huge Life Success and made a funny Canva cover in 30 minutes. This:
That looks nothing like my present books. No logo or style. The book felt amateurish.
The book started bothering me a few weeks after publication. The advice was good, but it didn't appear professional. I studied the book business extensively.
I created a style for all my designs. Branding. Win Your Inner Wars was reissued a year later.
Title, cover, and description changed. Rearranging the chapters improved readability.
Seven years later, the book sells hundreds of copies a month. That taught me a lot.
Rushing to finish a project is enticing. Send it and move forward.
Avoid rushing everything. Relax. Develop your projects. Perform well. Perform the job well.
My first novel was underfunded and underworked. A bad book arrived. I then invested time and money in writing the greatest book I could.
That book still sells.
Traveling
I hate travel. Airports, flights, trains, and lines irritate me.
But, I enjoy traveling to beautiful areas.
I do it strangely. I make up travel rules. I never go to airports in summer. I hate being near airports on holidays. Unworthy.
No vacation packages for me. Those airline packages with a flight, shuttle, and hotel. I've had enough.
I try to avoid crowds and popular spots. July Paris? Nuts and bolts, please. Christmas in NYC? No, please keep me sane.
I fly business class behind. I accept upgrades upon check-in. I prefer driving. I drove from the Netherlands to southern Spain.
Thankfully, no lines. What if travel costs more? Thus? I enjoy it from the start. I start traveling then.
I rarely travel since I'm so difficult. One great excursion beats several average ones.
Personal effectiveness
New apps, tools, and strategies intrigue most productivity professionals.
No.
I researched years ago. I spent years investigating productivity in university.
I bought books, courses, applications, and tools. It was expensive and time-consuming.
Im finished. Productivity no longer costs me time or money. OK. I worked on it once and now follow my strategy.
I avoid new programs and systems. My stuff works. Why change winners?
Spending wisely saves time and money.
Spending wisely means spending once. Many people ignore productivity. It's understudied. No classes.
Some assume reading a few articles or a book is enough. Productivity is personal. You need a personal system.
Time invested is one-time. You can trust your system for life once you find it.
Concentrate on the expensive choices.
Life's short. Saving money quickly is enticing.
Spend less on groceries today. True. That won't fix your finances.
Adopt a lifestyle that makes you affluent over time. Consider major choices.
Are they causing long-term poverty? Are you richer?
Leasing cars comes to mind. The automobile costs a fortune today. The premium could accomplish a million nice things.
Focusing on important decisions makes life easier. Consider your future. You want to improve next year.
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Josef Cruz
3 years ago
My friend worked in a startup scam that preys on slothful individuals.
He explained everything.
A drinking buddy confessed. Alexander. He says he works at a startup based on a scam, which appears too clever to be a lie.
Alexander (assuming he developed the story) or the startup's creator must have been a genius.
This is the story of an Internet scam that targets older individuals and generates tens of millions of dollars annually.
The business sells authentic things at 10% of their market value. This firm cannot be lucrative, but the entrepreneur has a plan: monthly subscriptions to a worthless service.
The firm can then charge the customer's credit card to settle the gap. The buyer must subscribe without knowing it. What's their strategy?
How does the con operate?
Imagine a website with a split homepage. On one page, the site offers an attractive goods at a ridiculous price (from 1 euro to 10% of the product's market worth).
Same product, but with a stupid monthly subscription. Business is unsustainable. They buy overpriced products and resell them too cheaply, hoping customers will subscribe to a useless service.
No customer will want this service. So they create another illegal homepage that hides the monthly subscription offer. After an endless scroll, a box says Yes, I want to subscribe to a service that costs x dollars per month.
Unchecking the checkbox bugs. When a customer buys a product on this page, he's enrolled in a monthly subscription. Not everyone should see it because it's illegal. So what does the startup do?
A page that varies based on the sort of website visitor, a possible consumer or someone who might be watching the startup's business
Startup technicians make sure the legal page is displayed when the site is accessed normally. Typing the web address in the browser, using Google, etc. The page crashes when buying a goods, preventing the purchase.
This avoids the startup from selling a product at a loss because the buyer won't subscribe to the worthless service and charge their credit card each month.
The illegal page only appears if a customer clicks on a Google ad, indicating interest in the offer.
Alexander says that a banker, police officer, or anyone else who visits the site (maybe for control) will only see a valid and buggy site as purchases won't be possible.
The latter will go to the site in the regular method (by typing the address in the browser, using Google, etc.) and not via an online ad.
Those who visit from ads are likely already lured by the site's price. They'll be sent to an illegal page that requires a subscription.
Laziness is humanity's secret weapon. The ordinary person ignores tiny monthly credit card charges. The subscription lasts around a year before the customer sees an unexpected deduction.
After-sales service (ASS) is useful in this situation.
After-sales assistance begins when a customer notices slight changes on his credit card, usually a year later.
The customer will search Google for the direct debit reference. How he'll complain to after-sales service.
It's crucial that ASS appears in the top 4/5 Google search results. This site must be clear, and offer chat, phone, etc., he argues.
The pigeon must be comforted after waking up. The customer learns via after-sales service that he subscribed to a service while buying the product, which justifies the debits on his card.
The customer will then clarify that he didn't intend to make the direct debits. The after-sales care professional will pretend to listen to the customer's arguments and complaints, then offer to unsubscribe him for free because his predicament has affected him.
In 99% of cases, the consumer is satisfied since the after-sales support unsubscribed him for free, and he forgets the debited amounts.
The remaining 1% is split between 0.99% who are delighted to be reimbursed and 0.01%. We'll pay until they're done. The customer should be delighted, not object or complain, and keep us beneath the radar (their situation is resolved, the rest, they don’t care).
It works, so we expand our thinking.
Startup has considered industrialization. Since this fraud is working, try another. Automate! So they used a site generator (only for product modifications), underpaid phone operators for after-sales service, and interns for fresh product ideas.
The company employed a data scientist. This has allowed the startup to recognize that specific customer profiles can be re-registered in the database and that it will take X months before they realize they're subscribing to a worthless service. Customers are re-subscribed to another service, then unsubscribed before realizing it.
Alexander took months to realize the deception and leave. Lawyers and others apparently threatened him and former colleagues who tried to talk about it.
The startup would have earned prizes and competed in contests. He adds they can provide evidence to any consumer group, media, police/gendarmerie, or relevant body. When I submitted my information to the FBI, I was told, "We know, we can't do much.", he says.
Sam Hickmann
3 years ago
Token taxonomy: Utility vs Security vs NFT
Let's examine the differences between the three main token types and their functions.
As Ethereum grew, the term "token" became a catch-all term for all assets built on the Ethereum blockchain. However, different tokens were grouped based on their applications and features, causing some confusion. Let's examine the modification of three main token types: security, utility, and non-fungible.
Utility tokens
They provide a specific utility benefit (or a number of such). A utility token is similar to a casino chip, a table game ticket, or a voucher. Depending on the terms of issuing, they can be earned and used in various ways. A utility token is a type of token that represents a tool or mechanism required to use the application in question. Like a service, a utility token's price is determined by supply and demand. Tokens can also be used as a bonus or reward mechanism in decentralized systems: for example, if you like someone's work, give them an upvote and they get a certain number of tokens. This is a way for authors or creators to earn money indirectly.
The most common way to use a utility token is to pay with them instead of cash for discounted goods or services.
Utility tokens are the most widely used by blockchain companies. Most cryptocurrency exchanges accept fees in native utility tokens.
Utility tokens can also be used as a reward. Companies tokenize their loyalty programs so that points can be bought and sold on blockchain exchanges. These tokens are widely used in decentralized companies as a bonus system. You can use utility tokens to reward creators for their contributions to a platform, for example. It also allows members to exchange tokens for specific bonuses and rewards on your site.
Unlike security tokens, which are subject to legal restrictions, utility tokens can be freely traded.
Security tokens
Security tokens are essentially traditional securities like shares, bonds, and investment fund units in a crypto token form.
The key distinction is that security tokens are typically issued by private firms (rather than public companies) that are not listed on stock exchanges and in which you can not invest right now. Banks and large venture funds used to be the only sources of funding. A person could only invest in private firms if they had millions of dollars in their bank account. Privately issued security tokens outperform traditional public stocks in terms of yield. Private markets grew 50% faster than public markets over the last decade, according to McKinsey Private Equity Research.
A security token is a crypto token whose value is derived from an external asset or company. So it is governed as security (read about the Howey test further in this article). That is, an ownership token derives its value from the company's valuation, assets on the balance sheet, or dividends paid to token holders.
Why are Security Tokens Important?
Cryptocurrency is a lucrative investment. Choosing from thousands of crypto assets can mean the difference between millionaire and bankrupt. Without security tokens, crypto investing becomes riskier and generating long-term profits becomes difficult. These tokens have lower risk than other cryptocurrencies because they are backed by real assets or business cash flows. So having them helps to diversify a portfolio and preserve the return on investment in riskier assets.
Security tokens open up new funding avenues for businesses. As a result, investors can invest in high-profit businesses that are not listed on the stock exchange.
The distinction between utility and security tokens isn't as clear as it seems. However, this increases the risk for token issuers, especially in the USA. The Howey test is the main pillar regulating judicial precedent in this area.
What is a Howey Test?
An "investment contract" is determined by the Howey Test, a lawsuit settled by the US Supreme Court. If it does, it's a security and must be disclosed and registered under the Securities Act of 1933 and the Securities Exchange Act of 1934.
If the SEC decides that a cryptocurrency token is a security, a slew of issues arise. In practice, this ensures that the SEC will decide when a token can be offered to US investors and if the project is required to file a registration statement with the SEC.
Due to the Howey test's extensive wording, most utility tokens will be classified as securities, even if not intended to be. Because of these restrictions, most ICOs are not available to US investors. When asked about ICOs in 2018, then-SEC Chairman Jay Clayton said they were securities. The given statement adds to the risk. If a company issues utility tokens without registering them as securities, the regulator may impose huge fines or even criminal charges.
What other documents regulate tokens?
Securities Act (1993) or Securities Exchange Act (1934) in the USA; MiFID directive and Prospectus Regulation in the EU. These laws require registering the placement of security tokens, limiting their transfer, but protecting investors.
Utility tokens have much less regulation. The Howey test determines whether a given utility token is a security. Tokens recognized as securities are now regulated as such. Having a legal opinion that your token isn't makes the implementation process much easier. Most countries don't have strict regulations regarding utility tokens except KYC (Know Your Client) and AML (Anti Money-Laundering).
As cryptocurrency and blockchain technologies evolve, more countries create UT regulations. If your company is based in the US, be aware of the Howey test and the Bank Secrecy Act. It classifies UTs and their issuance as money transmission services in most states, necessitating a license and strict regulations. Due to high regulatory demands, UT issuers try to avoid the United States as a whole. A new law separating utility tokens from bank secrecy act will be introduced in the near future, giving hope to American issuers.
The rest of the world has much simpler rules requiring issuers to create basic investor disclosures. For example, the latest European legislation (MiCA) allows businesses to issue utility tokens without regulator approval. They must also prepare a paper with all the necessary information for the investors.
A payment token is a utility token that is used to make a payment. They may be subject to electronic money laws.
Because non-fungible tokens are a new instrument, there is no regulating paper yet. However, if the NFT is fractionalized, the smaller tokens acquired may be seen as securities.
NFT Tokens
Collectible tokens are also known as non-fungible tokens. Their distinctive feature is that they denote unique items such as artwork, merch, or ranks. Unlike utility tokens, which are fungible, meaning that two of the same tokens are identical, NFTs represent a unit of possession that is strictly one of a kind. In a way, NFTs are like baseball cards, each one unique and valuable.
As for today, the most recognizable NFT function is to preserve the fact of possession. Owning an NFT with a particular gif, meme, or sketch does not transfer the intellectual right to the possessor, but is analogous to owning an original painting signed by the author.
Collectible tokens can also be used as digital souvenirs, so to say. Businesses can improve their brand image by issuing their own branded NFTs, which represent ranks or achievements within the corporate ecosystem. Gamifying business ecosystems would allow people to connect with a brand and feel part of a community.
Which type of tokens is right for you as a business to raise capital?
For most businesses, it's best to raise capital with security tokens by selling existing shares to global investors. Utility tokens aren't meant to increase in value over time, so leave them for gamification and community engagement. In a blockchain-based business, however, a utility token is often the lifeblood of the operation, and its appreciation potential is directly linked to the company's growth. You can issue multiple tokens at once, rather than just one type. It exposes you to various investors and maximizes the use of digital assets.
Which tokens should I buy?
There are no universally best tokens. Their volatility, industry, and risk-reward profile vary. This means evaluating tokens in relation to your overall portfolio and personal preferences: what industries do you understand best, what excites you, how do you approach taxes, and what is your planning horizon? To build a balanced portfolio, you need to know these factors.
Conclusion
The three most common types of tokens today are security, utility, and NFT. Security tokens represent stocks, mutual funds, and bonds. Utility tokens can be perceived as an inside-product "currency" or "ignition key" that grants you access to goods and services or empowers with other perks. NFTs are unique collectible units that identify you as the owner of something.
Ossiana Tepfenhart
3 years ago
Has anyone noticed what an absolute shitshow LinkedIn is?
After viewing its insanity, I had to leave this platform.
I joined LinkedIn recently. That's how I aim to increase my readership and gain recognition. LinkedIn's premise appealed to me: a Facebook-like platform for professional networking.
I don't use Facebook since it's full of propaganda. It seems like a professional, apolitical space, right?
I expected people to:
be more formal and respectful than on Facebook.
Talk about the inclusiveness of the workplace. Studies consistently demonstrate that inclusive, progressive workplaces outperform those that adhere to established practices.
Talk about business in their industry. Yep. I wanted to read articles with advice on how to write better and reach a wider audience.
Oh, sh*t. I hadn't anticipated that.
After posting and reading about inclusivity and pro-choice, I was startled by how many professionals acted unprofessionally. I've seen:
Men have approached me in the DMs in a really aggressive manner. Yikes. huge yikes Not at all professional.
I've heard pro-choice women referred to as infant killers by many people. If I were the CEO of a company and I witnessed one of my employees acting that poorly, I would immediately fire them.
Many posts are anti-LGBTQIA+, as I've noticed. a lot, like, a lot. Some are subtly stating that the world doesn't need to know, while others are openly making fun of transgender persons like myself.
Several medical professionals were posting explicitly racist comments. Even if you are as white as a sheet like me, you should be alarmed by this. Who's to guarantee a patient who is black won't unintentionally die?
I won't even get into how many men in STEM I observed pushing for the exclusion of women from their fields. I shouldn't be surprised considering the majority of those men I've encountered have a passionate dislike for women, but goddamn, dude.
Many people appear entirely too at ease displaying their bigotry on their professional profiles.
As a white female, I'm always shocked by people's open hostility. Professional environments are very important.
I don't know if this is still true (people seem too politicized to care), but if I heard many of these statements in person, I'd suppose they feel ashamed. Really.
Are you not ashamed of being so mean? Are you so weak that competing with others terrifies you? Isn't this embarrassing?
LinkedIn isn't great at censoring offensive comments. These people aren't getting warnings. So they were safe while others were unsafe.
The CEO in me would want to know if I had placed a bigot on my staff.
I always wondered if people's employers knew about their online behavior. If they know how horrible they appear, they don't care.
As a manager, I was picky about hiring. Obviously. In most industries, it costs $1,000 or more to hire a full-time employee, so be sure it pays off.
Companies that embrace diversity and tolerance (and are intolerant of intolerance) are more profitable, likely to recruit top personnel, and successful.
People avoid businesses that alienate them. That's why I don't eat at Chic-Fil-A and why folks avoid MyPillow. Being inclusive is good business.
CEOs are harmed by online bigots. Image is an issue. If you're a business owner, you can fire staff who don't help you.
On the one hand, I'm delighted it makes it simpler to identify those with whom not to do business.
Don’t get me wrong. I'm glad I know who to avoid when hiring, getting references, or searching for a job. When people are bad, it saves me time.
What's up with professionalism?
Really. I need to know. I've crossed the boundary between acceptable and unacceptable behavior, but never on a professional platform. I got in trouble for not wearing bras even though it's not part of my gender expression.
If I behaved like that at my last two office jobs, my supervisors would have fired me immediately. Some of the behavior I've seen is so outrageous, I can't believe these people have employment. Some are even leaders.
Like…how? Is hatred now normalized?
Please pay attention whether you're seeking for a job or even simply a side gig.
Do not add to the tragedy that LinkedIn comments can be, or at least don't make uninformed comments. Even if you weren't banned, the site may still bite you.
Recruiters can and do look at your activity. Your writing goes on your résumé. The wrong comment might lose you a job.
Recruiters and CEOs might reject candidates whose principles contradict with their corporate culture. Bigotry will get you banned from many companies, especially if others report you.
If you want a high-paying job, avoid being a LinkedIn asshole. People care even if you think no one does. Before speaking, ponder. Is this how you want to be perceived?
Better advice:
If your politics might turn off an employer, stop posting about them online and ask yourself why you hold such objectionable ideas.