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.