Startup Pays Contractor In Crypto, Then Requests It To Be Returned After It Mooned

Saturday 08 May 2021, 1:00 PM AEST - 1 month ago

A freelancer who was paid in cryptocurrency in August 2020 was recently left stumped by the CEO of a startup he had worked for, who requested he return the crypto and invoice the company in USD at the original rate.

Return Sevenfold Gains

According to the freelancer – who went by the name Crypto Confused when writing to The Moneyist, a column dedicated to financial advice – his advertising and market research activities for the company were billed in an unspecified cryptocurrency that has since grown by 700%.

He has since been contacted by the CEO of the small company who contracted his services, stating that since his services had not brought the company any direct revenue, he should return the cryptocurrency and rebill the company in USD.

According to Crypto Confused, the company was still struggling to find clients despite the services he and others provided.

“Please note that there have been several other people trying to sell the company’s solutions. It is a startup and so far, they are still trying to generate their first dollar in sales. The purpose of the contract was to generate sales and it included a commission component, but the understanding was that I would bill hourly for cold calling and emailing people, generating proposals, setting up meetings, participating in and leading pitches, etc., with the goal of generating revenue.”

In the letter to The Moneyist, he stated that he has known the CEO in question professionally for years, and this wasn’t the first time he had tried to change the terms of a job.

Crypto Confused asked for advice on how to respond to the situation – and was advised to not send back a single satoshi.

“No. Alas, no. No, thank you. Absolutely not. Ask me again in 2121.”

Leaving aside the possible legal ramifications of the CEO’s laughable request, it’s worth asking: would he have written the same email if crypto had tanked instead?

Although the contract with the unnamed company did state that payments could be made either in USD or in cryptocurrency, at the end of the day payment was made in crypto – and there’s no reason to take a net loss due to terms that the employer probably regrets now. A contract is a contract is a contract.

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