THELOGICALINDIAN - n-a
Rumors are bouncing afterwards an action to buy out the aboriginal belvedere for decentralized lending. Nexo, a European-based aggregation for cryptocurrency-collateralized lending, has beatific a “letter of intent” to buy out SALT Lending, a agnate account in New Zealand, the United Kingdom and several states.
The letter–which Nexo additionally aggregate on amusing media—appears to be an action for the acquirement of SALT’s “remaining condoning assets,” including outstanding accommodation debts and their cryptocurrency collateral. If accepted, Nexo can action a allotment accommodation of “up to US $2,000,000” for chump of SALT’s outstanding accommodation applicants, and will account SALT’s actual obligations on its own platform.
The action additionally says that Nexo will “consider” accepting SALT tokens as accessory or acquittal for SALT’s outstanding loans.
The letter was broadcast broadly on Nexo’s LinkedIn and Twitter platforms, area it was spun as “lending a allowance hand” to an apparently-ailing competitor. Within the SALT community, including actionable Telegram groups, the action was broadly absolved as a publicity stunt.
Both companies allotment the archetypal of application cryptocurrency as accessory for banknote loans—an avant-garde business archetypal that accustomed SALT to affair one of the best assisting initial bread offerings of 2017. However, that archetypal absent its address in 2018, back cryptocurrency prices began to sink.
SALT’s aggregation administration additionally fabricated several stumbles. In an credible accomplishment to absolve SALT as a account token, the aggregation absitively to accomplish loans repayable in SALT at retail prices. Since the bazaar amount for SALT was decidedly lower on exchanges, that action created a advantageous arbitrage befalling for SALT’s borrowers, and that befalling widened as the token’s amount connected to sink.
Expectations fell alike lower due to the team’s poor communications with their investors. Although the aggregation has ditched SALT repayments, it additionally bound its community engagements and angry to abundant balance in its Telegram groups. The two official subreddits, Saltlending and Salttrader, appearance few signs of life.
It’s not bright how actively Nexo meant for the action to be taken, but the letter put a megaphone to rumors that SALT Lending may be on its aftermost legs. Aftermost week, SALT’s CEO and founder, Shawn Owen, abruptly stepped bottomward after account and was replaced with an “interim” admiral and CEO.
Crypto Briefing’s buzz calls and email letters to SALT’s Denver offices were not alternate at the time of writing.
The columnist is not invested in either SALT or Nexo, but does own added cryptocurrencies.
