The digital lending platform SALT loans that accept crypto assets as collateral and provides easy cash loans online has ceased the membership requests that concludes the demand of about 1.3 billion dollar loan. The company, for now, won’t be proceeding any membership, loan and SALT purchase requests.
Blockchain based SALT puts a temporary stop to 1.3 billion Loan Request
The Colorado-based digital lending platform, SALT i.e. Secured Automated Lending Technology that was launched back in 2017 was the first such platform to enter the cryptocurrency marketspace. At the time, SALT claimed that it has issued more than $23 million blockchain based loans. Moreover, it stated that they had a demand for about $1.3b more loan requests pending that they were going to address.
The idea behind SALT easy cash loans online was to bring a new methodology through blockchain in the lending space. The platform used the cryptocurrency among other blockchain based assets held by the member as a collateral to issue cash loans. However, a notable point is that during the time the crypto asset is in collateral, any appreciation or depreciation is owned by the borrower as the asset remains the property of the borrower.
But it looks like the company is finally realizing the extent of the situation:
“Due to the enormous demand and loan requests, we will be temporarily suspending new membership registrations, loan requests, and purchases of SALT on our platform. Existing members will still be able to deposit SALT on the platform and upgrade their membership in the interim. We plan to begin adding members and turn on all associated features as soon as we have satisfied the automation of our current loan process and have served the current pending loan requests.”
The minimum loan grant limit by the company is 5,000 USD. In the business model of SALT, the bigger loans are floated by the authorized investors having a net worth of over million dollars.
SALT team to shift its focus to scaling
Apparently, the company is trying to keep its focus on platform scalability or at least that’s what SALT says as stated by them:
“The process of scaling and automating our processes and technology has been progressing well but we’ve recognized an opportunity to focus our team’s time and resources on this important goal and on addressing the existing demand before we continue to add new memberships and loan requests.”
This move certainly won’t be helping SALT’s position in the market. Started with somewhere around $6.50, the company went through a lot of ups and downs. Now, the price of SALT is riding at $3.84 at the time with a market cap of $207,276,194 USD.
While halting the features temporarily, SALT has also declared that they will work on its platform to address any demands that they may have to encounter in future.
What are your views on SALT loans model and platform? Do you think the move to halt the member requests will affect the SALT prices negatively? Let us know below!
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.