Attorney Shao Shiwei | Joining a Web3 Company or a Web2 Company: How Should Professionals Make Their Choice?

In the current market environment, fluctuations and uncertainties in the global economy have led to slowed corporate growth and even waves of layoffs. Many industries have reduced their hiring demands, leaving job seekers facing intense market competition.

Against this backdrop, although the crypto market is also in a bear phase, the surge of Web3 applications continues to maintain an seemingly endless demand for talent.

As attorneys specializing in the crypto industry, Attorney Shao’s team frequently encounters inquiries from Web3 job seekers in their daily practice.

While job seekers are attracted by the unique working models and high compensation in the Web3 industry, they also harbor concerns about potential risks within the sector.

Today, let us discuss:Should one join a Web3 company or a Web2 company? How should job seekers make this choice?

01

Compared to traditional industries, Web3 remains relatively unfamiliar to most job seekers. Based on the inquiries received in our practice, we observe that job seekers interested in the Web3 sector include, but are not limited to, the following types:

For roles such as technical positions, operations, and product management—positions required in both Web2 and Web3 industries—job seekers browsing recruitment websites will notice that Web3 positions offer higher salaries compared to their Web2 counterparts;

Some job seekers are themselves participants in the cryptocurrency circle. For instance, a friend who previously consulted us on Web3 startup risks was formerly a programmer at a major tech company. He earned millions trading meme coins in his spare time over the course of a year, leading him to resign and pursue entrepreneurship in the crypto space;

Compared to traditional office-based work, some job seekers prefer flexible working arrangements. When searching for jobs on recruitment platforms, they often see that numerous Web3 positions accept remote or part-time work formats;

Other job seekers consider Web3 positions for more pragmatic reasons: the competitive pressure in Web2 roles is too intense, and after comprehensively evaluating compensation packages, the only offers they are willing to accept are those in the Web3 sector.

For professionals coming from Web2, whether they choose the Web3 industry actively or passively, and whether they enter the Web3 space as job seekers or entrepreneurs, Attorney Shao’s team has observed through consultation cases that their common concerns include, but are not limited to, the following:

• What type of contract should be signed with the company/platform? What about my social security contributions?
• Is the business operated by my company/platform safe? If it is not safe, does my job content entail any relevant legal risks?
• If compensation is paid in virtual currencies or platform tokens, what risks does this pose to me?
• Which Web3 recruitment platforms are reliable? What common "pitfalls" do job seekers encounter when looking for jobs?
• Should one consider attractive overseas Web3 positions with high salaries?
• What advice or experience can attorneys share with newcomers to the Web3 workplace?
• Which Web3 roles or skills will have better prospects in the future? How should I plan my career path in advance?

……

Over the past few months, after addressing hundreds of Web3 job-seeking inquiries, we have found that when consultees seek legal advice, beyond understanding relevant legal risks, they primarily hope to leverage our understanding of the Web3 industry to help them judge: based on their individual circumstances, how they should make more suitable choices for the present and the future.

Many Web3 project teams or actual controllers are not located within China, especially for projects involving token issuance or operating exchanges, which are prohibited. However, due to considerations of operational and labor costs, a large number of employees work within mainland China. For employees,how should they assess the legal risks in China associated with the Web3 position they are applying for, and if risks exist, should they choose to accept the position or decline it?

In my personal view, job seekers need to understand what type of company or platform they are choosing, what fields its business scope covers, what specific business the job seeker will be engaged in, what the core job responsibilities are, and what the legal evaluation of the company’s/platform’s business operations is within China.Only after gaining a clear understanding and anticipating the worst-case scenario should one make a choice, thereby avoiding potential regrets and remorse in the future.

Why emphasize understanding the company? Because employee risks largely stem from the company and its projects. If we assume the worst-case scenario occurs—where the Web3 project involves criminal offenses—employees working in China would naturally be implicated.

In situations involving criminal risks, it is common for core employees and management of the company to be summoned to assist in investigations, and they may even be detained. Based on the principle that greater capacity entails greater responsibility, generally speaking, individuals at the level of department heads and above face greater criminal risks or pressure from public security organs, while grassroots staff face relatively lower legal risks. However, this division of responsibility is not absolute; the core factor depends on the employee’s level of participation and knowledge within the specific project as a worker of the company.

For example, a job seeker previously consulted us regarding his position as a researcher. His job involved collecting as much market data as possible for projects the platform intended to invest in and producing industry research reports. Recently, he was informed by his supervisor that he would be transferred to another department whose business activities involved token issuance. Having learned that token issuance is prohibited in China, he was concerned about whether he faced any legal risks.

After addressing his legal questions, we asked him why he still appeared confused about how to proceed despite understanding the legal risks. He stated that he had recently applied for Web2 positions, but the salaries offered were not satisfactory compared to his current role. This brings us back to the issue of personal choice mentioned earlier.

Another example concernssalary and social security issues.Whether social security is contributed, and the amount contributed, is directly linked to local household registration (hukou) policies, medical insurance, and related social welfare benefits. However, employers in the Web3 industry may be located overseas, unable to sign labor contracts with job seekers in the platform’s name, contribute to social security, or even pay salaries in virtual currencies.

Many job seekers consequently consult on labor law issues, but the concerns extend beyond that. A Web3 practitioner once consulted us regarding frozen bank cards. He was an employee of an exchange, receiving monthly salaries in USDT. Since he lived in China, he had to convert his salary into fiat currency via OTC transactions each month. One day, he discovered his bank card had been frozen by the bank. Upon inquiry, bank staff replied that they considered it abnormal for him to receive fixed transfers from different individuals every month, leading to the freezing of his account. This caused significant inconvenience to his life. Nevertheless, he had no intention of leaving his industry or position.

We can see that job seekers consider far more than just legal issues during consultations; they are primarily weighing the ratio of benefits to risks.

Job seeking in Web3 is full of unknowns and opportunities. It may offer higher compensation, more flexible working arrangements, and simpler, more efficient workplace interpersonal relationships, but it also comes with potential legal risks.

As for whether to choose a Web2 or Web3 position, it is not merely a choice regarding the job content itself,but also a value judgment regarding one’s future career development and a choice reflecting one’s risk preference.

We hope that all job seekers, after comprehensively understanding all risks and combining this with their actual circumstances, will make workplace choices that are more suitable for themselves.

🌟🌟🌟Interactive Topic

• When applying for a Web3 position, if the company is unwilling to sign a labor contract, would you decline a high-salary offer due to the lack of protection under labor laws?

• If the offer provides two options for salary payment: Option 1 is payment solely in RMB; Option 2 is payment solely in USDT. If calculated in RMB equivalent, the amount for Option 2 is twice that of Option 1 (but converting USDT carries the risk of bank card freezes, and if illicit funds are inadvertently received, it may even involve suspicions of crimes such as aiding information network criminal activities or concealing criminal proceeds, among other money laundering offenses), which option would you choose?

Share your views in the comments section!