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crypto-backed loans by salt & Is Salt lending legit?

What are Crypto-backed SALT Loans?

Last year, the Decentralised Finance (DeFi) business expanded fast. Learn more about the crypto-backed loans offered by SALT Lending.

The bitcoin industry has exploded in recent years. More businesses are adopting and investing in cryptocurrencies on a global scale. El Salvador, a country in South America, recently approved legislation making Bitcoin legal tender. The DeFi business has been at the forefront of the next wave of bitcoin growth.

Decentralised Finance has emerged as a significant driver of the bitcoin industry during the last year. A DeFi, or decentralised financial firm, offers similar services to a bank but with fewer regulatory constraints and decentralised power. SALT, a crypto-backed lending platform, is one of the most notable DeFi companies functioning today. Discover SALT and how cryptocurrency loans operate.

What exactly is a cryptocurrency loan?

Loans guaranteed by cryptocurrency are precisely that. Loans with crypto-assets as collateral Crypto financing is enabled through SALT's platform. Individuals who have difficulty obtaining loans can tremendously benefit from crypto-backed lending. As long as a borrower has cryptocurrencies, SALT Lending can assist a large number of people who require money but are unable to obtain loans due to credit concerns or other considerations. SALT Lending makes loans to businesses and individuals guaranteed by bitcoin deposits.

Purchase SALT Tokens to become a member of SALT Lendig. Once accepted as members, their cryptocurrencies are sent to the SALT crypto wallet and their loan amounts are transferred to their bank accounts. It is simpler and faster than obtaining a standard bank loan due to the lack of paperwork and procedures.

However, crypto-backed loans are not risk-free. If you pledge a particular cryptocurrency as collateral for a loan and the value of that coin plummets substantially, the organisation will require additional funds in the form of collateral. You can, however, earn money even after repaying your loan if the price of your cryptocurrency skyrockets. Visit SALT Lending's official website to discover more about their loans and policies.
Team SALT Lending & Progress

The SALT team numbers around 15 employees and is directed by Shawn Owen, who served as CEO. Owen is a serial entrepreneur with extensive expertise operating in the hospitality industry. Owen left the company in July 2018, leaving CTO Bill Sinclair in charge. Erik Voorhees, one of the SALT team's mentors, is the team's most prominent member. Voorhees founded and serves as CEO of ShapeShift, one of the most prominent cryptocurrency-to-cryptocurrency exchanges. SALT accomplished a significant milestone in January 2018 when it began providing loans to its top-tier members. The platform has already funded over 70,000 loans totaling more than $50 million. In 2018, plans included the issuance of credit cards, the establishment of lending funds, and the expansion of collateralization to cover other alternative coins. The team achieved only a portion of its objectives. The organisation boosted its lending capabilities by including Litecoin and Dogecoin loans. However, it appears as though credit cards and development tools are still a ways off.


SALT is the market leader in blockchain-based loans at the moment, but the field is seeing some new entrants. ETHLend and Elix are two newcomers to the decentralised lending space on the Ethereum blockchain. SALT distinguishes itself by focusing on institutional cash loans backed by bitcoin, whereas the other two ventures appear to have pursued a peer-to-peer model. Both use cases should have a strong market presence. Additionally, SALT faces competition from other established companies that offer cryptocurrency-backed loans but do not use a unique token.

Token SALT

SALT tokens, alternatively referred to as membership tokens, are ERC20 tokens that may be used to join the SALT lending network. Additionally, you can use these tokens to pay down loan interest, obtain better loan rates, and make purchases from SALT's online store. At one point, these tokens had a value on the loan platform that differed from their market value. They were formerly worth exactly $27.50 on the loan market, but are now trading at a discount to that price. Previously, you could have used SALT tokens to repay the capital on your loans. As a result, an intriguing arbitrage opportunity was formed. If you had the cash, you could theoretically purchase an Enterprise membership for $1200 and obtain a $1 million loan secured by $1.25 million in Bitcoin. You could then return to the market and purchase $1 million worth of SALT tokens (83,333 SALT). Due to the platform's value of $27.50 for SALT tokens, you would only need to spend 45,455 SALT tokens to repay your debt. This would leave you with little less than 40,000 SALT tokens and the original Bitcoin you used as collateral - a return of around 40%. The SALT team must have figured out this strategy, as the possibility has since been eliminated.


SALT launched an initial coin offering (ICO) in Q3 2017 during which you could purchase a membership token for between $3.00 and $7.00, depending on the time of purchase. There are 120 million SALT tokens available, with somewhat more than 80 million currently in circulation. SALT saw a small decline following its initial coin offering (ICO) before surging back up to just over $7 in October 2017. Shortly thereafter, the price dropped to between $2 and $4 (0.0003-0.0005 BTC) and remained there until December 2017.

Beginning in December 2017, the price gradually increased until it reached an all-time high of more than $17 following the revelation that lending on the platform had finally begun. Since the price peaked at the end of 2017, it has fallen precipitously. The coin has lost almost 98 percent of its value in 2018. It is presently worth around $0.25.
Due to the fact that SALT is not required to utilise the loan platform, little is likely to cause the price to climb again. A thriving bitcoin market should aide in this endeavour. Additionally, membership incentives that are sufficiently lucrative may exert some positive demand-side pressure. Apart than that, it's difficult to envision this coin resurrecting.

Where to Purchase SALT

Binance and Bittrex are the most popular exchanges for purchasing SALT. To convert Bitcoin or Ethereum for SALT on one of these exchanges, you must first possess Bitcoin or Ethereum.

If you lack either, you can acquire them using conventional currency on an exchange such as Gemini and then transfer them over.

CoinMarketCap has a comprehensive list of exchanges where you can purchase SALT.

What to Do With SALT

Due to the fact that SALT is an ERC20 token, you have a few different alternatives for storing it. MyEtherWallet is a popular online wallet.

The SALT website advises and even gives instructions for using the Jaxx wallet. Jaxx is accessible as a Chrome extension and on Android, iOS, Mac, Windows, and Linux.

Using a hardware wallet such as Trezor or the Ledger Nano S is the most secure option to store your tokens. By utilising hardware wallets, you can keep your assets secure and out of reach of hackers and malicious software.

Final Thoughts

The SALT loan platform is an excellent solution if you want/need to pay for some real-world expenses but don't want to forfeit your crypto earnings. Additionally, the project is addressing a significant issue with blockchain assets - illiquidity. The concept adds liquidity to the bitcoin market by introducing an altogether new type of loan.

The team is built on a strong foundation of blockchain experience and is advised by an industry leader. SALT is ahead of many other blockchain projects due to the fact that it already has a functioning platform in the market.

Having said that, the platform does not necessitate the use of SALT tokens. As a result, you may be wondering why the company has a unique token in the first place. Hopefully, the addition of new membership tiers will make this clearer.