SALT LENDING

Opportunities:
Borrowing using cryptocurrency as collateral is a large and growing need as cryptocurrency emerges as a legitimate investment asset class.
Utilizing the blockchain, SALT is able to automate many of the processes in the application and monitoring of loans, thus lowering the cost for borrowers.
Network effect is present. The bigger SALT gets, the more lenders and borrowers of different coins/tokens, which provides the platform more liquidity.
The company has a strong team in place, including the CEO of Shapeshift on the board.
SALT has already secured investments from venture capital firms, meaning that the project has already passed due diligence of those institutional investors.

Concerns:
The two-tier fees of fiat and SALT can be confusing to some users, making the platform not as user friendly.
If SALT becomes successful and many people use it, it may cause cryptocurrency prices to be more volatile because there will be more margin calls when price decline. This would create more force selling and prices to decline further, creating a downward cycle.
Margin call monitoring may be difficult to implement for cryptocurrency assets because there are different exchanges trading the same asset. “Fat finger” may be a problem that can trigger unwarranted margin calls.

Conclusion:
I am neutral about the short-term potential but like its long-term potential. As a project, I really believe SALT has a huge potential for the following reasons.
This project is going to help cryptocurrency as an investment asset class. If SALT is successful, taking a loan from cryptocurrency holdings would be something that is easily done, similar to other asset classes such as real estate and stocks. More people would invest in cryptocurrencies if they can borrow against it.
The SALT platform is compelling not only for borrowers, but for lenders as well. This is going to provide another venue of income and shield lenders from the volatility of crypto. Using the SALT platform as a lender also offers the potential to acquire cryptocurrencies when prices are low / during market downturn or panic, which are actually some of the best times to increase exposure in crypto.
With the volatility of cryptocurrencies, lenders would need to be properly compensated to take on the risks of asset prices falling under the loan value. I am not surprised if lenders on SALT receive annual interest rate of over 20%.
Our thoughts of the tokens for short term and long term are as follows:
For short-term holding:
Neutral because there are other pre-ICO investors who purchased SALT tokens for as low as $0.25. Some of those investors may want to cash out and diversify their investments, and they may be willing to sell their tokens for much less than $10. This may create a downward pressure of SALT price initially.
For long-term holding:
Good because I believe blockchain-backed loans have a huge potential. With the strong team in place, SALT has a good chance to succeed because there is a genuine need for its services.