>Bitcoin crashes to $4,000 >Have $40,000 on bank >Quickly buy 10 Bitcoin >Go to Salt >set 10 bitcoin up for collateral >You get a $32,000 loan >Buy 8 more bitcoin >Prey to the crypto gods that the price of bitcoin will recover as good as possible within the next month >Sell a tiny bit of 1 bitcoin to pay off your monthly loan payment >You end up with having your 10 original bitcoin+6 bitcoin you bought with the loan (You could pay off the loan repayment with only 2 bitcoin that appreciated in value over time)
If YOU aren't going to do EXACTLY this then you are a fucking liar because everyone and his dog will do this
How the fuck will they give me the loan though if im not a burger? Will they pay out in Bitcoin too?
Jaxon Fisher
So what happens if someone says fuck you and doesn't pay the loan back?
Austin Rivera
this
Aiden Bell
Why not just do a 100x on bitmex.
Blake Jones
He said you have to put up the original bitcoin as collateral. So the person giving the loan would be just keep that.
Aaron Roberts
I can see this actually being used but, what value does the SALT token have?
Tyler Powell
wait, what is this screenshot?
its alpha release or something?
John Fisher
This is what i'm curious about. Where does the salt token come in and why do i need it? To actually take a loan right? but why?
Nathan Ross
so if I have $5k of BTC i need to put that up as collateral to get a $5k loan USD?
why didn't people make this smart contract a year ago? wtf
Charles Hill
yes to take a loan, its usable
Ryan Diaz
1 year of basic membership is $25 or 1 salt Reducing your loan's interest rate by $25=1 salt.
10 SALT for up to $100K and 100 SALT for up to $1M+
This is why it's good to accumulate Salt right now if you are going to take out a loan in the future you are literally buying $25 for $2.5
Bentley Young
What if bitcoin crashes to 1000 dollars?
Anything lower than 4000, I won't pay the loan back and someone lost a ton of money.
They whole system is based around the assumption that crypto will keep gaining in value. As soon as a bear market starts, it's dead.
Jace Howard
If i take a loan and use BTC as collateral will they pay me out in BTC or fiat? If its in fiat, how will they do this if you're located in the third world or are borrowing without KYC?
Lucas Moore
Its so you can gain access to the lender network on the platform.
You can also use SALT tokens to pay off interest towards your loan which they have $25 of value when used on the platform.
Adam White
So for 100 salt, I use up to 1mil (USD) worth of BTC as collateral, and recieve 1 mil in USD, that I have to pay back over what time frame? Are you able to use this platform for lending and not just borrowing?
>Guy A wants $100,000 loan >Guy A has to put $125,000 worth of cryptocurrency in a smartcontract to receive loan >If Guy A pays back $100,000+interest in monthly increments to Guy B he will automatically get his $125,000 worth of cryptocurrency back (probably worth more than $125,000 when he gets it back). >If Guy A doesn't pay his loan back Guy B will automatically get the $125,000 worth of cryptocurrency from the Smartcontract >If the cryptocurrency value depreciates 20% somewhere during the lending period then Guy A gets an automated message to either give that 20% with fiat, more cryptocurrency or default the loan and give the cryptocurrency that was locked in the smartcontract to Guy B.
Makes sense?
Jordan Walker
You have to put up 125% of the loan as collateral. If the price of BTC drops more than 20% during the course of the loan, you will have a few days to pay the difference in USD or you lose your BTC
Blake King
That's a really roundabout way of going long on a margin...
Josiah Evans
You get cash from the lender once you've put up your crypto for collateral and then you can spend it instantly however you like.
Christian Green
Is the page bugged? I've been trying to create an account since yesterday morning, I already have 400 salt, but it constantly says "There was a problem with the server. Please refresh the page"
Is anybody having this problem?
Asher James
Soooo why is SALT only 2.50$ at the moment? It was around 7-8$ a couple of months ago.
Leo Nelson
Sure it makes sense, because crypto is extremely stable.
Justin Perez
Release is Q4.
It wont stay this cheap for long. Not with the stuff thats coming out this week
Benjamin Ross
>Release is Q4. oh, ok thanks.
Joseph Bennett
We're gonna be so rich boys
Dylan Nelson
How are they legal-wise? Surely this fucks with some bank loan policies.
Alexander Young
crypto is not officially a currency
Aiden Torres
115 MM market cap ? a bit high dont ya think?!
Jeremiah Thompson
Retards SALT top guys sold off 25m for joke. They will crash and die and leave you all SALTy.
David Clark
Crypto doesn't care about news Price will stay the same for longer
Aiden Wood
? I was only asking why I couldn't register to the page. I know this will take months. I'm willing to hodl.
Elijah Lopez
this doesn't even make sense since people will just use 100 SALT ($250 current price) and cash out their BTC for a fiat loan, tax free, and never pay the loan back... this shit will never work
Connor Mitchell
You're an idiot lmao
Ayden Cruz
Please wait for the price to drop more than by half. Bitcoin Bear Markets last years and the price always drops by at least a factor of 8. Please don't give away everything OP.
Kayden Martin
what is this bear market thing?
Ethan Barnes
Smart money vs dumb money
Nathan Taylor
when price is going in negative direction
Bentley Parker
this, tons of people gonna get #rekt
Carter Bell
Instead of doing this stupid shit, just take a x10 leveraged long position on Bitcoin. Fuck. Jesus.
Brayden Bennett
Whoever started this project has some serious balls because when the crypto fantasy comes crashing down they are going to be out a dickload of money. Fucking retarded as fuck idea.
Colton Barnes
What if you want to get access to credit?
Are you stupid?
This is going to be how people with crypto can cash out without it being a taxable event, as well as spend the extra money however the way they damn want.
If they default on the loan, they lose their collateral or a part of it depending on if they have already made some repayments or not.
Liam Cook
how and where can i do that, and how does it work exactly
Jonathan Scott
Sweet Bridge will be much better. It uses collateral from your personal assets.
Robert Phillips
SO Salt will have to go up in price. Say someone hold 500 Salt. What can he do with 500 of it? Loan it out? Or take loans out?
David Sullivan
Holding 600 SALT since 3.5$, expecting a 3x at least
Jacob Ortiz
HAHAHAHAHAHAHAHA literally this is just margin trading but more complicated
Matthew King
Exchanges won't let you take the cash outside.
Jacob Hughes
they take your bitcoin faggot and then some
Evan Sanders
of course they are doing KYC
Jonathan Garcia
I wrote this post yesterday in another thread. I was severely coked up and apologize for my retarded English usage.
I also managed to buy LINK without doing some research on it and then managed to post in 1 thread for a continuous 30 hours.
The only thing I remember is that 80% of the posts made were people that didn't understood how basic finance worked at all which I continuously needed to explain.
Either way if the other guy from the thread that talked to the developers on slack is reading this.
I did some more research on Salt and it turns out they already have all their agreements and government contracts with SEC to put this thing up. They are 100% covered and ready to launch with 0 legal problems. The IRS is okay with this platform which is great news.
Luis Walker
>they already have all their agreements and government contracts with SEC to put this thing up. They are 100% covered and ready to launch with 0 legal problems. The IRS is okay with this platform which is great news.
Sauce and I go balls deep right now
Landon Sullivan
Or just use Bitmex margin trading?
Evan Nelson
reminder that doing what OP suggests is probably illegal if you fall under the jurisdiction of any sane securities enforcement bureau
Leo Nguyen
you need to put a 25%, I think, more than you get a loan for
I wrote it and no it's not Illegal. They have a deal with multiple lenders and SEC. It's in their white paper already.
Jackson Gomez
fuck I read it too in their telegram, can't find the convo atm but I'm sure it's written somewhere
Jonathan Kelly
i'm not talking about the service itself i'm talking about buying what could be regarded as securities with the loans
Logan Young
Since the loan is collateralized you can do with your money whatever the fuck you want (secured loan). What you mean is a credit backed loan which has certain limitations to it.
Gabriel Walker
no what i mean is an SBLOC which is what this would most likely be considered as if you are able to use things other than just bitcoin
Oliver Collins
You were specifically making a cumbersome version of margin trading under 2x in your OP. Don't complain because your example is shit.
But anyway, this is where we can see you're a shill with heavy bags. If you had a modicum of sense, you would have pointed out the benefit of SALT is decentralization. Margin trading on an exchange leaves you susceptible to exit scams or market dumps, whereas having your loan secured through a smart contract is safer... theoretically
Christopher Anderson
Looking forward to the updates and release of this platform because its is going to be huge.
Chase Rodriguez
>They have a deal with multiple lenders and SEC. >This is going to be how people with crypto can cash out without it being a taxable event,
How is having the government all up in your business a good thing? Isn't the reason that coinbase is shit because it's in bed with the government?
Isaiah Rogers
It doesn't matter if uncle sam knows, why?
Because it's literally using a tax loophole the entirety of Wall street is using. Do you really think they will close a 30 year old widely used loophole just to stop a single niche cryptocurrency service? The entire US based stock market would come tumble down if it was closed and thus you now have the option to scam the government right in their faces and there is NOTHING that they can do about it.
Juan Hill
>stop a single niche cryptocurrency service >NOTHING that they can do about it. I'm not too knowledgeable about this, so I can't really argue, but I don't think they really care about consistent application of the law.
Eli Jenkins
Seems like a good coin, thanks for tip.
Kayden Morales
You're assuming lenders would still want to lend with such a crash. What if a lot of them pull out during such times?
Adrian White
SALT is not decentralized nor trustless thus all it will take is one hack to bring down the whole fucking ecosystem. Why wouldn't people flock to Ripio instead which is decentralized?
Samuel Carter
What would the point be in putting 125% of the loan amount for collateral? Putting 125% of something like a house where you have equity would be different because it isn't liquid, but why put up 125% of a currency up for collateral just to get 25% less of another currency?
Elijah Gutierrez
So you can have fiat without being taxed up the ass.
Cameron Morris
Thats going to force you to disclose everything about your crypto holdings to the tax man though.
Daniel Moore
Why? It would just potentially expose how much I put up in BTC to take out a loan, not EVERYTHING.
Chase Johnson
>currency Crypto isnt a currency in the greatest country in the world. Its the same as putting up your rare pokemon cards for a loan.
Colton Martin
I don't know man. They mention that what they are doing IS subject to certain regulation, but no assurances as far as I can tell that everything has already undergone audits and/or compliance checks by the authorities. Maybe im reading it wrong or missed something?
Chase Cox
Just bought at 40.000 It's easily going to 50.000 tonight
Parker Clark
Youre already being taxed a guaranteed 25%.... plus interest on loans, not to mention salt/govt taking crypto reserves, its a sneaky way of govt accuiring crypto
Ian Miller
They have to do this to hedge against the possibility of value of the crypto dropping during the term of the loan. The borrower isn't really "out" anything as the coins were in a wallet anyway. Now they're tied up in a smart contract but he is temporarily liquid for 80% of it without having to repurchase higher. This is slightly incorrect in that you do not lose the entire amount even in default. The contract will settle the debt with the lender (loan+interest owed) and return the rest to the owner.
Brody Wilson
This sounds too good to be true so I'm sure it is. If this is really the a way to make bank with crypto and not pay tax, the government will do something about it. Uncle Sam will take his cut regardless of anything. The machine requires money.
Luis Lee
>Be a bank >Want BTC, but can'y just print it >Can print fiat >Go on SALT >Print $; get BTC >Market crashes >Get BTC without purchasing from exchange >Profit
Luke Martin
I see where you're coming from and it's a really interesting point. However, what you posted does not necessarily reflect a regulation/law but could just be a banker reducing his risk or shielding himself from complicated legal battles when resolving differences on these kinds of contracts.
Simplistically speaking: purpose loan = you must use the money for a specific purpose (e.g. buying a home residence) non-purpose loan = you must not use the money for a specific purpose (in the case of your pic related, securities)
Again, I have no real knowledge on the actual loaning regulations, but trying to think logically (which is sometimes a big no-no in the legal world) I could maybe see the need for such a regulation to exist to prevent a hypothetical scenario similar to this: Guy owns a lot of assets in a specific market. Puts it all as collateral and gets a very comparable (4/5ths of his original capital) and starts using it to manipulate the market by buying against his original assets. These kinds of loans give "too easy" access to large amounts of money if someone would want to do that.
Again, this is just a hypothetical and depending on the specifics of the contract might not even be feasible.
Do you know of any actual regulations behind this practice, or can you give a probable reason this kind of regulation would exist? Legit curious
Tyler Nguyen
>Have $40,000 on banK Lol
Christian Turner
Fellas... What did they mean by this? Does it count as collateral per exchange market value or does it count as collateral worth 25USD?
Curious to read the actual regulation text (if it exists)
I don't have the english legal terminology to look for it myself
Dylan Torres
LOTS OF SUSPICIOUS WALLS PLACED TODAY AND RUMOR OF A PUMP AND DUMP
Just buy it a couple of days later to be sure
Thomas Lee
lol a meme i made has been reused
Christopher Bell
> (You) >lol a meme i made has been reused
Thanks for creating it good sir. Your meme will not go unnoticed.
Blake Jenkins
and if it goes wrong you will end up broke for life yeah no thx only invest what you are willing to lose
Camden Flores
when crypto crashes the collateral becomes useless.
in a bear market, salt can't be used because you'll have to continually lock up your crypto or risk getting liquidated completely, losing everything.
in a bull market, a margin long on a platform like bitmex, or bitfinex is much cheaper, and doesn't require invasive KYC, and is significantly less risky.
nobody is going to use this to get a loan to buy crypto.
Brandon Robinson
i have a bunch. shill to your hearts content. i dont hold salt anymore.