Definitely worth selling that token if he isn’t interested in keeping it himself. I couldn’t find a previous “sold” auction for the token on eBay to confirm the $2000 price, but I do know the token has at least too important characteristics going for it: any token that says “Saloon” on it commands a higher selling price, and a token from a “territory” is also valued higher - in this case from Hawaii long before it became a state. The rough condition means it obviously won’t get the value that a better example might get, but if it truly is a “rare” token, the condition won’t hurt it as much as you might think. Much, if not all, of the lettering is readable, which is key.
Tokencatalog.com has a little on the history of the token:
TokenCatalog entry for the token