4/
Are gift cards free loans? Absolutely, yes.
Same way capex light businesses release pre-orders on their latest products.
Same way concert tickets release months in advance of a show.
Same way payment processors take a few business days to release funds to merchants.
Time value of money.
1/
Been nerding out about the economics of gift cards.
Tonight I used a $300 gift card at a steakhouse, purchased back in 2016.
$300 in the restaurant’s pocket 10 years ago.
Throw that into a 5% APY HYSA and it’s worth almost $490 today. +60% return.
All while only realizing the actual cost of the meal a decade later.
3/
This 20% off has to come from somewhere.
Some of it’s the default rate (unredeemed cards).
The rest is float.
At a 5% discount rate, how long does that float need to be?
I mathed it out, and at only a 10% default (in theory it’s probably a bit higher), the breakeven time period for a 20% discount would be 2.5 years.
Literally millions of $ of cards getting pulled on @phygitals every week.
Lean team. No VC funding. No parent company. Just RWA enthusiasts and pioneers doing their thing.
Market leaders. Higher.
Phygi coded.
Investing directly in Anthropic’s primary round
vs.
Investing in a triple-layered SPV claiming they have exposure to Anthropic with a 15% upfront mgmt fee + 25% carry fee structure
BIG NEWS: I am giving away a set of all 3 NEW
@eatboldbar flavors to 100 lucky people!
20g Protein. 100mg Caffeine. Incomparably Clean.
You'll be the first to try the new bars.
You'll get them early June.
The sample pack includes:
- Mocha Crisp
- Peanut Butter
- Cookie Dough
To enter:
1) Fill out the form in my bio
2) Like this post
3) Respond to this post by tagging a friend.
Announcing Cofounder 2: Run an entire company with agents.
It's the infrastructure for the one person billion dollar company - orchestrating agents across engineering, sales, marketing, ops, and design.
(and yes that's my real grandma in the video)