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Token Analysis: SALT

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The SALT name is meaningful to us because it hearkens back to the time in history when table salt gained use as a store of value, becoming one of humanity’s first monies. By utilizing salt as a medium of exchange for food, clothing, and other general provisions, it was salt which broke the mold of what a currency could be – there was no longer need for intrinsic value, now value was just an abstraction. SALT is also the name given to our programmed loan smart contracts as an acronym for Secured Automated Lending Technology (SALT).

Cryptocurrency is money, and money catalyzes the growth of many services. In the beginning, you have the unit of exchange and nothing else. If the unit of exchange survives, you then have people who are willing to exchange said unit for goods, services, and alternative units of exchange. Following that, each of these expands into larger versions of themselves, and services grow to support those as well – a service is developed specifically to help others accept the unit of exchange, for instance. Once your economy is stable enough that all of these things work reasonably well, the speculator class develops margin lending instruments so that they can profit from the sidelines as well as the interactions themselves. And then, finally, some sort of international market is going to be necessary.

Since with cryptocurrency we already have an international currency, a better analogy for SALT is that they are creating an interplanetary means of leveraging cryptocurrencies. Whereas margin lending allows you to leverage what you have in order to achieve higher profits (or losses) in cryptocurrency, SALT lending allows you to leverage your cryptocurrency assets as collateral in any effort.

What SALT is

The idea, according to the company’s Shawn Owens, was born of the conclusion that many successful cryptocurrency traders would prefer to hold their assets instead of selling them, but that often they have no way to do this. Thus, if you want to convert your cryptocurrency assets into real-world utility, even though you believe they are going to continue retaining value, your only option is to sell and lose future revenues. For fiat lenders, SALT represents the opportunity to adequately assess and capitalize on very liquid, volatile asset classes that are mostly alien to them at present.

The SALT token itself is not a normal ICO ERC20 smart contract. It is a membership card. Its supply, therefore, will not be very limited, and making it transferable would seem fairly contrary to the notion of KYC/AML compliance. As such, no analysis is really necessary as regards of the SALT token. It is meaningless if the SALT platform itself has no future, and it is worth as much as you can earn from whatever you might do with a SALT loan dispensation. SALT is “intentionally unpurposed,” meaning the loans can be for anything. Cryptoasset holders can get home improvement loans, small business loans, big business loans, debt consolidation loans – any financial product that is offered by traditional fiat banks could be offered by lenders on the SALT

Cryptoasset holders can get home improvement loans, small business loans, big business loans, debt consolidation loans – any financial product that is offered by traditional fiat banks could be offered by lenders on the SALT platform, if all parties agree and the terms are legal within their jurisdictions of business. In a way, SALT is the Coinbase approach of cryptocurrency brought to its ratiocination – cryptocurrencies are completely legitimized and interchangeable with traditional asset classes, with less friction than previously imagined.

Owens gave an interview to the FutureTech podcast which m2akes it quite a bit easier to understand what is going on than does their lack of a whitepaper and very disparate frequently asked questions section. He made the following two statements that answer the biggest questions (what and when):

“What we’re really doing is introducing and creating a credit market that does not yet exist.”

[…]

“We hope to have a minimum viable product that’s accessible to the public at large in the 4th quarter of this year.”

What SALT Is Not

  • An Initial Coin Offering

SALT is not an ICO looking to crowdfund an idea. It would perhaps be a different story altogether if they had to use such means to get off the ground — numerous fundamentals would be missing.This is an easy mistake for newcomers to the space to make. SALT is a service for everyday and institutional borrowers who have cryptocurrency assets as collateral and institutional or private investors who might important requirements.

  • Peer-to-Peer Lending

Borrowers on the salt platform will apply for their loans in the traditional way that applications are done. They will not be put before a public review of thousands of people. SALT’s role in this will be to match borrower and lender. SALT’s Shawn Owens says that large-scale cryptocurrency holders could create an investment product with the SALT team if they wanted, but it might not be very attractive – what they could do is more of a mutual fund or high-return hedge fund vehicle in which they invest the funds for the lender.

Potential Unexpected Uses

  • Crowdfunded Funds

While SALT is not specifically intended for use by the great unwashed crowdfund world, it’s not impossible to imagine various crowdfunding platforms developing instruments to allow their lenders access. The requirements to lend on SALT have a lot of legalities that would have to be meted out, but potentially funds could be created which would then be used to lend via SALT in order to achieve returns.

  • Bloomberg-Type Services

If SALT succeeds and continues to create relationships between the cryptocurrency community and traditional financiers, one can imagine that reverse services will become available – SALT escrow services for institutional and other large scale transfers, SALT-backed ICOs, SALT-rated crypto tokens, and so forth.

  • ICO Parlay

Successful ICO outfits will be swimming in cryptocurrency both at the beginning of and throughout their business cycles. These outfits will be very interested in a platform like SALT, where they can leverage these assets in order to expand their business without another public crowdsale or fully realizing a revenue stream. This is an answer to traditional VC second, third, fourth, et cetera series funding rounds that many start-ups go through.

Conclusion

A future with firms like SALT in it is a future that many cryptocurrency enthusiasts will be in favor of: one where your cryptocurrency assets are valued right alongside your physical and fiat ones in a universal manner. Others will follow, but SALT has a first-mover advantage. Many things remain unclear about the actual nuts and bolts of the system, but the potential for such a concept is very high. SALT will either be an integral part of the cryptocurrency economy in the coming years, an early minnow in a stream soon to be crowded with sharks and whales, or a totally forgotten effort that is reminiscent of something current.

The cost of the token can be written off in the same way that loan application fees can be – a cost of doing business. From here, all we can do is report that a new method of gaining traction in the financial world is afoot which considers cryptocurrencies to be fully legitimate.

Featured image from Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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Analysis

Pre-Market: Trade War Optimism Sparks Another Bounce in Stocks

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Global stocks are markedly higher today before the US open, Donald Trump’s quite aggressive negotiating seem to be paying off, at least with regards to China, as in the wake of the pronounced weakness in Chinese assets, and the notable slowdown in the economy, the country wants to reopen the talks with the US.

Shanghai Composite, 4-Hour Chart Analysis

The Shanghai Composite hit a new bear market low overnight before recovering above support into the close, and the Dollar’s rally also ran into resistance, thanks to the Yuan’s bounce of its fresh 13-month low. Emerging market assets are also somewhat higher today, with the help of the Turkish Lira’s continued bounce, but the segment is still deeply wounded technically, and more pain is almost inevitably ahead, as the negative trends still stand.

 

DAX Index, 4-Hour Chart Analysis

Walmart’s great earnings report also fueled the pre-market rally in US futures, as the retail segment in the largest economy still seems to be doing just fine, despite the global woes. The major US indices are after an orderly looking correction, in stark contrast with their European and Asian peers, which are stuck in broader downtrends or even full-blown bear markets.

Nasdaq, 4-Hour Chart Analysis

Yesterday’s tech selloff, which was triggered by the weak report of Chinese giant Tencent has almost been erased after the better than expected numbers of Cisco restored confidence in the market-leading segment. Nvidia (NVDA) will also report after the market close, and as the earnings season is drawing to a close, we can conclude that corporate profits had a blowout quarter in the US, even as cracks in the global economy appeared.

Momentum is still clearly on the side of the FAANGS and the whole US tech sector even after discounting Facebook’s recent plunge, but should the tightening cycle of the Fed continue to drain liquidity from financial markets and should the rising trend in rates persist, we expect valuations to suddenly matter soon.

Dollar Pulls Back

Dollar Index (DXY), 4-Hour Chart Analysis

The possible resumption of the US-Chinese trade talks sparked a, so far, weak correction, which also due from a technical standpoint, with the EUR/USD pair finding support near $1.13, and with the broader Dollar Index running into resistance near the 97 level. The rally in the reserve currency is no danger by any means, as the break-out is clearly intact, but a deeper pullback would help risk-assets in the coming days.

WTI Crude oil, 4-Hour Chart Analysis

Commodities are slightly higher thanks to the relief rally in emerging markets and the dip in the Dollar, but the previously stronger crude oil is just holding up above the $65 support, while gold is clearly below $1200, and copper couldn’t get back anywhere near yesterday’s break-down level close to $2.70.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 320 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Crypto Update: Market Stabilizes but Bulls Not Out of the Woods

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The cryptocurrency segment looks much better than any time in the last 10 days, as the major coins managed to hold up above the liquidation lows hit on Tuesday. While the bounce stabilized the market, there is still substantial fragility following the steep selloff, and until further bullish moves, traders shouldn’t enter full positions.

That said, finally, there are signs of relative strength among the top coins as correlations are slightly lower, and some of the bearish leaders managed to recapture key resistance levels. Litecoin is trading right at the crucial $56 level, while Monero is above the $90 level, and as we noted before the exhaustion of their downtrend is a positive sign or the whole segment.

XMR/USDT, 4-Hour Chart Analysis

The bounce and the following stability triggered a few upgrades in our trend model after spending almost 1 month in the sell zone, but there are still no majors on a buy signal as the segment-wide downtrend remains intact. Bitcoin remains the strongest coin from a technical perspective, while Ethereum and Ripple, which showed weakness for weeks, are also in better shape, even as they face very strong resistance levels.

ETH/USD, 4-Hour Chart Analysis

Ethereum managed to hold up above the $275-$280 level during the overnight pullback, and now it faces the $300 resistance level again, trying to build on the recent rally. While the short-term downtrend is intact, and the oversold longer-term momentum readings could fuel a rally in the coming weeks, but now the coin is in a structural bear market after the break below $400.

The coin is now neutral from a short-term standpoint, but a move below $275 would point to another test of the lows. Further resistance is ahead at $3335 and $360, while strong long-term support is at $260.

Bitcoin Still Below $6500 as XRP Nears $0.30

BTC/USD, 4-Hour Chart Analysis

Not much has changed for Bitcoin in recent days, but relatively speaking the largest coin showed significant strength. That said, until BTC doesn’t show bullish momentum, traders still shouldn’t enter positions, as the structurally important $5850 level is still not far below the current price level. A move above $6500 would trigger a short-term buy signal, but further strong resistance levels are ahead at $6750 and $7000, while support is still found at $6275 and $6000.

XRP/USDT, 4-Hour Chart Analysis

Ripple and Ethereum are in very similar technical setups, and XRP is also facing strong resistance at $0.30 after finding support overnight near $0.275. After the panicky spike below $0.26, the odds of a durable increased, and should the coin stay above the overnight lows, the coin could avoid another short-term sell signal. While traders should still stay away from entering full positions here, a bottoming process might already be underway.

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Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 320 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Ethereum Takes Baby Steps to Recovery as Global Markets Surge 10%

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Following the first serious rebound from the last week’s carnage the global market gained 10% overnight, pushing back through the $200 billion barrier after a brief dip to $190 billion yesterday.

Ethereum Price Recovery

The rebound was not distributed equally, with many of the altcoins which had previously lost the most now benefiting in turn. Ethereum made a strong push in the last twenty-fours as it climbed from a near year-long low of $254.56 up to the current range in the $280’s, where it sits at the time of writing.

The 11% gains for the day sound good, but amount to relatively little in dollar value considering how much the coin lost in recent weeks. At one point during the night ETH climbed to a unit price of $290 – but that’s as far as it could go during this particular twenty-four stretch.

The sudden surge over the last twenty-four hours wasn’t enough to take Ethereum to the £300 mark, although that could be achieved following another 5% growth. The current $284 price per ETH is still one of the lowest witnessed in the last 11 months, so there’s still plenty of scope for investors to jump on board.

Predictably, USDT trades are the most popular today, making up close to 20% of the daily total as a significant portion of ETH becomes un-tethered. Wash-trades, or transaction mining on multiple exchanges once again comes close to equalling the actual recorded daily volume of $1.8 billion.

Global Surge Re-Rearranges Altcoins

While nothing could be termed normal in the crypto world, several coins have returned to their former market cap positions from before the dip. EOS is back in 5th place after temporarily being ousted by Stellar, and Cardano has returned to 8th spot after briefly giving up its place to Tether.

TRON and IOTA are still lingering outside the top ten, with Monero holding strong in the 10th spot previously occupied by TRON, and then IOTA in recent times.

Correlation and Causation

You’ve probably seen the Google Trend charts which show an alignment between ‘cryptocurrency’ Google searches, and the total cryptocurrency market cap. Right now the search volume is as low as it has been since before the surge of 2017 – but that isn’t necessarily an indicator of a lack of interest. It just means that people aren’t typing the word ‘cryptocurrency’ (or Bitcoin, which has an immensely larger search volume) into Google any more.

It says nothing about the number of people checking CoinMarketCap every day, and it doesn’t let you know how many people have suddenly become interested again after seeing prices drop to such long-time lows.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 38 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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