SALT ico today
Usually I don't post about icos (here's why), but this one seems so good and there's not much information on the net.
What's that
SALT is to obtain blockchain-backed loans, which use cryptocurrency holdings as collateral:
Platform
It has already a working demo product:
The ICO is organized on the SALT platform, which is a good start. The official launch of the lending platform is planned for the end of 2017.
Why SALT token is needed
Users need to obtain SALT tokens in order to participate on the platform and obtain loans. The more SALT tokens users spend each year, the larger amount of borrowings they can obtain:
Key advantages
- Borrowing money or assets using cryptocurrency is getting more popular (see lending cryptos on Ploniex and Bitfinex). Since cryptos are increasing in price, lots of users would want to get fiat without spending their crypto.
- Using the blockchain for lending money doesn't have much competition yet.
- Salt has strong well known team. Erik Voorhees, CEO & Founder of ShapeShift, is Board Director.
- It has strategic partners as ShapeShift, Exodus, Jaxx and Taas. It has already investments from venture capital firms.
- The price of SALT will be not less that $10 after the initial sale.
How to participate in ICO
ICO starts on Tuesday, August 15th at 8:00 AM MST (in about 3 hours) and until the following tiers are sold out:
- 2.0 million SALT @ $3
- 1.5 million SALT @ $5
- 1.0 million SALT @ $7.50.
You have to be registered on saltlending platform in ordered to participate (devs opted to do a private sale not a public sale, only those referred by someone have access to presale). If you want to invest more than $2000, there's also an automated ID verification.
- Website: https://www.saltlending.com/
- Whitepaper: https://crushcrypto.com/wp-content/uploads/2017/08/SALT-abstract.pdf
- Hard cap: $48.5 million (ICO contributors own 45% of total token supply if all SALT are sold in ICO)
- Soft Cap: US$35 million
- Conversion rate: Retail price of a SALT token is from $10
- Maximum market cap at ICO: US$108 million
- Bonus structure: Different tier in pricing from $3 to $7.5 per SALT depending on contribution time
- ERC20 token: Yes
Happy investing! Don't forget to upvote the post and follow me for more info about cryptos
Interesting concept. I like how there is a hard cap...but that bonus structure feels like it'll encourage people from not participating at the higher prices.
We'll see. There's a lot of FOMO in their telegram group. I managed to get in the first tire for 3$. Now it's already 5$ and it's still on.
You were right. It went so fast on the first tire, but on the second one there are not so many participants. However, according to slack, unsold tokens during ico will cost $10 when the presale is over (on 22nd August).
$10 Free worth of Eth tokens!! https://goo.gl/9uD4Tn Authorship ICO you will receive 75 ATS tokens! just need an Eth Wallet!
I really think SALT is a great investment to make. If you will be needing cash normally you would liquidate your cryptocurrency investments but here comes SALT. Whenever you need cash you can then get a loan based on your portfolio as collateral to the loan. That really is awesome get cash when you need it without losing your cryptocurrency portfolio. I will be looking to acquire some.
Unless you are a holder of BitShares. Then you can use your BTS as collateral to borrow bitUSD which can be converted to cash with relative ease. As long as you maintain a sufficient collateral ratio to avoid being margin called or force settled, you never actually let go of your BTS in the process (you even retain their voting rights), as they stay locked in a smart contract on the blockchain (no counterparty risk) until you close the debt position.
Did not know Bitshares can do that, never been able to study how bitshares work but I will be definitely looking at it. Thanks for sharing :)
Interesting. Will take a closer look at it.
Not sure SALT is a good idea using cryptos as in BTC etc.. as collateral. BTC is so volatile that you could be underwater when BTC move down. However, my guess is that once cryptos are held, they are converted to fiat thus maintaining the collateral value si it doesn't matter if the BTC value goes down. However not sure what is paid out fiat or cryptos? I assume it must be fiat because price appreciation of the BTC will likely be with SALT and you just make the interest collected on the loan. Another type of similar investment vehicle is Populous which is structured better for the investor.
Agree, but it's not for fiat only. For example, you can use BTC as a collateral and lend ETH. If you're sure that ETH will rise and BTC will not, then can make a lot of profit from that, similarly to margin trading.
More likely they are hedged with leveraged shorts.
Once your cryptos are converted to fiat, what do you get in return for your investment- fiat? You then lose the appreciation value of your cryptos.
I said "hedged with leveraged shorts", not converted to fiat. Short-selling is when you borrow the asset being traded in order to sell it with the implicit promise to settle the debt at a later time (either by directly settling the debt, or buying back the shorted asset). If you hold BTC and wish to hedge against volatility, you can can shortsell an equal amount of BTC - then, if the price goes down, the coin you hold loses value but your short contract gains an equal amount of value; if the price goes up, you short contract loses in value while the coin you hold increases by an equal amount. The loan of the BTC you are shorting must be collateralized, but the collateral ratio can be less than 1:1 if you short with leverage (with 5:1 leverage, you only need 20% of the equivalent value in collateral).
Off the top of my head, I'm a little uncertain on how to apply the principle to the manner of secured loans they are offering, but I don't see another way they can possibly make good on the promise of returning the coin you put up to secure a loan, rather than the dollar value of it a the time that you borrow.
If they need to hedge with leveraged shorts then it just telling me that they do not have a stable plan going forward. To me a loan company is all about stability and consistency of income.
I'm speculating about how they might be doing it, and I could be way off. I also don't see how using industry standard techniques for hedging come off as not having a stable plan going forward. To reiterate, I could be way off. Does anyone have a different/better idea about how they might be able to make good on their sales pitch?
I guess we will know the answer when it goes live. They will have devised a way to skim their share of the profits from the investors after all they are backed by bankers!
I'm speechless.
As the time goes by, expect BTC and ETH to be MUCH less volatile. This 2018 will see a much more linear movement, as some financial products tied to the price start to work in the financial industry. Not saying it will be as boring as gold this last years, but definitely the $500 up or down days are likely over. And with Bitcoin at $25,000 , a small jump of a couple hundreds will not trigger your margin call ^_^
I think as the masses start to jump in volatility will go through the roof. Cryptos are not on the radars of the masses yet and when it is there will be a fireworks display.
This post received a 4.8% upvote from @randowhale thanks to @crypto.girl! For more information, click here!
Thanks for the info about this. I hadn't heard about this before today! It looks like a really nice platform.
Like you said its seems like a good investment i personally wont buy in until Ive seen some form of establishment @rogerblu please follow me and upvote my articles
That's a wise decision. However those who risk can get more. The price on ico starts from $3. After that the price is guarantee to be not less than $10. According to FAQ, if it will drop less than $10 on exchanges, it will be bought back by the team. However, due to a small cap, just a few will be able to buy it less than $10. I hope I will be among them.
first thanks for the information, the price in exchanges is almost $4.3 at the moment which is less than $10. If the team has already bought back the tokens ( with this assumption that they did what they granted!) so the price may go lower and lower because they could't keep the price above 10$, please correct me if i am wrong.
SALT is very interesting. There will be an enormous company that emerges working on exactly this pain point (paying capital gains tax vs. borrowing against the asset).
I am however a bit concerned about there being a cap to the upside of the value of the token, because...if I’m a user and want to borrow $100k, I need 30 SALT tokens. But if the SALT tokens go up to $1k each, then it doesn’t make economic sense to use SALT.
scheme to collect bitcoin
@crypto.girl got you a $1.53 @minnowbooster upgoat, nice! (Image: pixabay.com)
Want a boost? Click here to read more!