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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.

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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.

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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

Crypto Update: Coins Lose Ground as Range Trading Continues

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While the weekend rally got bulls hope up that the consolidation phase might have ended, the technical setup hasn’t changed much in the segment, and today all of the major coins are lower again. The losses, which range from 2-5%, are not significant from a long-term standpoint, and most of the top coins are still clearly above the crucial support levels that mark the lower boundaries of the short-term trading ranges.

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With that in mind, traders still shouldn’t change their neutral stance, as there is no clear momentum present that would justify new positions here. Bitcoin continues to slightly outperform most altcoins today, but the divergence is not significant from a technical standpoint. Trading volumes continue to be well below the levels of the recent weeks, and that reinforces the bullish consolidation scenario.

BTC/USD, 4-Hour Chart Analysis

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BTC drifted back below the key $8400-$8600 zone, and it remains stuck the lower boundary of the range today, despite its slight relative strength. As the short-term MACD indicator is neutral, and our trend model is also on a neutral signal, further choppy trading is likely ahead.  Short-term support is found near the intraday low, at $8150, with a stronger zone between $7650-$7800, with further resistance ahead between $9000 and $9200, $10,000, and $10,500.

ETH/USD, 4-Hour Chart Analysis

Ethereum is trading right at the center of the short-term range, as the coin gave back most of its weekend gains, while losing its relative strength in the process as well. The coin remains on a neutral short-term trend signal similarly to the broader market, with the price action still being consistent with an orderly correction. Resistance is ahead between $735 and $780, at $845 and $900, while support is found between $625 and $645 and between $555 and $575.

Tron Still Outperforms as Correlations Remain High

TRX/USD, 4-Hour Chart Analysis

Tron made the most progress among the op coins since bottoming out after the correction, and the coin remains bullish from a short-term perspective despite the current pullback. The $0.075 support/resistance level is in the center of attention, while the late-April high at $0.010 is the next target for the move. As the broader market remains in a corrective phase, but the coin is one of the prime candidates to hit a new high in the coming weeks.

Dash, Monero, Ripple, and Litecoin are still weaker than segment average, while the recently lagging IOTA held the key $1.7 level. For now, there is still no sign of a developing robust leadership, as EOS failed to regain its bullish momentum, and no major joined Tron in the rally.

Featured image from Shutterstock

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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4.5 stars on average, based on 255 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

Technical Analysis: Dow Jones Moves Toward Intermediate-Term Target, Closes above 25,000

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Technical Overview

  • On May 8, the Dow Jones Industrial Average was on the verge of completing a 2-month bottoming pattern. On May 9, the index gave the buy signal with a minimum price target of 26,200 (1,300 points from the point of the breakout – white vertical trendline in Figure 1).
  • Last week’s advance fell less than 5 points short of the 25,000 level. The 8 EMA served as support during the subsequent correction (yellow line).
  • Today (May 21), the index jumped by nearly 300 points to close above 25,000 for the first time since March 13.
  • The Feb 9 & April 2 lows have created a tentative “double bottom” formation. The pattern will be completed if the index breaks above the pattern’s interim high (red horizontal trendline).

Major support levels:

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  • The 24,600 level (last week’s base).
  • The neckline of the inverse H&S pattern (white downward-sloping trendline, currently at 24,200).

Major resistance levels:

  • Double bottom interim high at 25,800 (red trendline).
  • Origin of February correction & January high – 26,400 to 26,617 range.

Figure 1. Dow Jones Industrial Average Daily Chart

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Implications

  • While the tech-heavy NASDAQ pulled back from its intraday high, DJIA continues to perform strongly, marching towards the upside target obtained from the H&S pattern.
  • In one trading session, the index made up for an entire week of sideways/corrective movement. Such price action is indicative of fast-moving markets, which are leaping towards a specific target. In this case, the completion of the inverse H&S is expected to continue driving the index higher at least until it retests the 25,800 level.
  • If the index moves above 25,800 the double bottom will be completed. A move above January’s high will further strengthen the bullish thesis and shift the long-term outlook to bullish.
  • Long positions in index-tracking ETFs and constituents recommended.

 Outlook

  • Short-term outlook as long as the index remains above its 8 EMA.
  • Intermediate-term bullish as long as the index remains above the neckline of the inverse H&S pattern.

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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4.8 stars on average, based on 12 rated postsPublished author of technical research. In his work on price “gaps”, published in the 2018 International Federation of Technical Analysts’ Annual Journal, he developed a new technical tool for analyzing and trading the “gap” phenomenon – the “K-Divergence” (http://ifta.org/public/files/journal/d_ifta_journal_18). Besides obtaining a Master in Financial Technical Analysis, he has completed a BBA and an MBA from the Schulich School of Business in Toronto and has completed all exams for the CFA, CMT and CFTe designations. Currently, providing research to investment management and financial advisory firms. http://www.linkedin.com/in/konstantindimov




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Analysis

Crypto Update: Sideways Drift Continues as Bitcoin Fights with the $8400 Level

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The largest coins attempted another rally towards the end of the weekend, but today the, not too strong, momentum faded and the majority of the majors is sliding lower today. The coins are in or close to the recent trading ranges, with the whole segment hovering in or near the recent ranges, without major changes in the technical setups.

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The low-momentum environment means that the coins are still on neutral short-term trend signals, and traders should still wait before entering new positions, as the short-term trend remains corrective. That said, most of the majors are holding up above crucial support levels and the underlying bullish trend is intact while the overbought readings that developed during the late-April rally are being cleared. Out of the top coins, only Tron made significant technical progress, and until a clear leadership develops, choppy conditions will likely continue.

BTC/USD, 4-Hour Chart Analysis

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Bitcoin finally showed some relative strength today, reclaiming the $8400 level, and reaching an intraday maximum near $8600. Despite the move, the coin is now back near the key support level, and with $8700 level still ahead as strong resistance, the trend signal remains neutral.  While the coin drifted out from the declining short-term trend, a new trend hasn’t established yet.

Short-term support is found near $8150, while the $7650-$7800 range provides long-term support, with resistance ahead between $9000 and $9200, $10,000, and $10,500.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still hovering around the $700 level, still in a corrective phase following strong April rally, and the coin remains on a neutral trend signal as well. Resistance is still ahead between $735 and $780, with targets above that at $845 and $900, while support is found between $625 and $645 and between $555 and $575.

Total Market Value Stuck Below $400 Billion

IOT/USD, 4-Hour Chart Analysis

As altcoins gave back a large portion of the weekend gains, the total market cap of the coins is at $380 billion again, despite Bitcoin’s stability. On a negative note, the previous leaders of the rally, IOTA and EOS failed to make a move, and the latter is showing weakness today, trading near the correction low. All in all, price action points to further consolidation in the segment, and traders should remain patient until buy signals start ot pop up.

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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4.5 stars on average, based on 255 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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