BlocksInform
"Find out more: why are crypto lenders continuing to explode?. Salt will use the capital for new products as well as its growth strategy, according to a draft press release provided to coindesk.
In November, online investing platform Bnk To The Future terminated its planned acquisition of SALT Lending after the latter informed customers it would pause withdrawals and deposits on its platform due to an unspecified exposure to FTX. The purpose of the new financing was to recapitalise Salt's balance sheet and capital reserves. Subject to regulatory approval, Salt is in the process of resuming operations in Q1 of this year.
Founded in 2016, Denver Salt provides blockchain secured loans where borrowers implement cryptocurrency as collateral. Last year saw a slump of crypto blockfi lenders, The bear market and the wave of collapses have exposed insolvency and certain illegal activities, such as lending money to clients. Last year saw crypto BlockFi's lenders crash, The sister company of Celsius Network and CoinDesk, Genesis Global Trading, as a bear market and collapse wave, uncovered insolvency and certain illegal activities, such as lending funds to customers.
The slumps stained every crypto lender with a degree of suspicion. Salt was not protected from these market forces. We are determined to emerge stronger than ever," said Salt Founder and Interim President Shawn Owen in a statement.”
We are determined to emerge stronger than ever," said Shawn Owen, founder and interim CEO of SALT.
"Despite an unprecedented situation and, frankly, an existential threat, we have launched a growth plan that we believe will allow us to be even more successful going forward." "emerging from FTX infection in a Coindesk interview last week, Mr. Owen said salt first saw a golden opportunity as the 2021 bull market gave way to a bear market at the beginning of last year.
Whereas speculative fund implosions three capital and celsius arrows "put the words "crypto loan" before and at the center – in a bad way,” owen said salt entered into its merger agreement in part because bnk to the future agreed with its plan to bid on celsius assets to try and find a solution to the once high-yield lender’s downfall. However, the collapse of the FTX that started in early November took the market—and salt—by surprise. Salt said he was okay with canceling the merger so he could concentrate on the problem. As FTX spreads, salt has decided to "simply get out of the market, close everything, protect our customers and re-evaluate," said Owen. The platform was not designed to stop like this, and users were frightened.
Salt has passed the consequences by speaking to its base in an attempt to restore trust.
Wondered how crypto lenders can reconquer nervous clients, Owen stated that the answer is transparency and the provision of evidence of reservations, noting that her business collects more money than she would otherwise to accumulate a surplus. "We've been completely open and transparent like never before," said Owen.”
Read more: Why Do Crypto Lenders Keep Blowing Up?
