Salt is a lending platform designed to connect borrowers and lenders for collateral-backed loans. The collateral is cryptocurrencies such as Bitcoin. Right now, there is no platform and hence there is zero use case for the Salt tokens. However, Salt is intending on launching their platform this month and if it is successful, I anticipate Salt tokens will appreciate in value hence I am taking a chance.
The risk is very high - we don't know for certain that they have the lending network required to make this work or that they actually have a platform to connect these lenders with borrowers. In addition, regulatory risks are much higher as lending has some of the tightest regulations of any industry. However, I find the team to be professional and view it as a real practical use-case that will be used immediately IF the platform is operational.
The Salt tokens essentially act as membership on the website and allow one to take out these collateral-backed loans. They can also be used to reduce the interest rate of the loan or to integrate API in event that an exchange wants to introduce leverage onto its platform without having users interface with Salt. The team holds a substantial amount of Salt, which is a fair criticism, although it appears the funds are being put to good use.
If the project is legitimate, I suspect this will lead to a huge influx of capital into cryptocurrencies as people leverage their existing Bitcoin positions to purchase more Bitcoin (which I DON'T recommend doing, but suspect many will anyway). If this is the case, it will inflate the bubble much faster than before and it will be an interesting development to observe through December. If it isn't legitimate, then I'm willing to lose my entire stake. There are also circumstances where it is legitimate, but the lending terms are not attractive so the platform never takes off.
I'm interested in your opinion as always. Thank you for watching.
Disclaimer: None of what I provide in my videos is investment advice. Please do your own due diligence before making any investment decisions.
loving your post, you always speak about your investment with amazing critical thinking. Risk vs reward and no emotional attachment/cheerleading. keep up the awesome work.
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I see a lot of users on the cryptocurrency reddit also talking about SALT a lot. I'm sure once the platform comes out there'll be a related jump in price.
Long term there's so many factors and variables to consider. Its risky, but I guess this whole cryptocurrency thing is and always will be right?
Love your work mate!
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Are you going to give an update on your SALT investment? I would be very interested in a clip like that.
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Are you planning on doing an update on Salt anytime soon?
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Michael Novogratz mentioned this project as a buy on Dec 16 (Twitter). Outside of that, I haven't found any new info. Has anyone heard anything regarding their planned platform launch in December?
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Hello ! I just read your article, I love it & I upvoted you. Follow me @osmanie and I follow you too!
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Hi! Love your youtube videos and thank you for providing your market insights. I wonder if you can talk about Salt vs. Lend? As well as your take on Salt price in Q1 2018? I bought in at around 580 satoshi and now am a bit worried due to the lack of news from the project's development team as well as other channels.
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Hey, I know you're probably over this topic since you posted this video so long ago but a response would be really greatly appreciated.
What do you think the new risk factors for SALT are now that the platform has successfully released and they have begun rolling out over a million dollars in loans per day (implying that they have been able to navigate around regulation).
The SALT team has said many times over their official telegram channel that the reason they are rolling out loans relatively slowly over the first few days is that they want a 0% error rate before they scale up and greatly speed up the loan application process.
Furthermore, what do you think could possibly stop SALT from reaching a market price of $27.50 being that you can use SALT purchased on any exchange to pay your principal and interest on you loan, making it very profitable for debters to purchase SALT on exchanges and use it to pay down their loans until the price reaches SALT retail price.
Thank you in advance for your time and I look forward to your response.
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What is their ambitions? Do they aim for being used throughout the world, or are they focusing on a smaller area? How do they get income? Does their CV imply they can make this product?
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This concept sounds very interesting, but what happens to SALT if too many of their members default on their loans?
I hope I can answer that question myself once I have time to read the White Paper...
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