SALT Membership Unit is the cryptocurrency of the SALT Lending platform and it is based on Ethereum blockchain.
What Is Salt?
SALT Membership Unit is the cryptocurrency of the SALT Lending platform and it is based on Ethereum blockchain. SALT membership units can be stored in any ERC-20 compatible wallet It can be used as collateral for taking out a loan in fiat money as well as a repayment of interest and fees on a loan.
SALT membership units used to be necessary for using the SALT Lending platform, however, this is not the case anymore. They can be purchased on the SALT platform, as well as on some exchange platforms, such as Huobi Global or Uniswap, and traded on their own nevertheless. However, the primary use of SALT tokens is that they allow you to take out loans on the SALT platform with rates and terms of the loan being better when you use them, instead of other currencies or fiat money, as collateral.
Notably, there is currently a lack of certainty regarding the future prospects of SALT, as of September 30, 2020, a ruling by the Securities and Exchange Commission (SEC) of the U.S. ordered SALT to offer refunds for investors who participated in the 2017 ICO along with paying a $250,000 civil penalty. However, since SALT agreed to register its tokens as securities, the price has briefly surged by 140%.
Pros and Cons of Salt
Advantages of SALT
- Possession of SALT tokens can get you better rates and terms on the SALT Lending platform
- SALT tokens can be used to cover fees and interest on loans
Disadvantages of SALT
- At the same time, SALT tokens cannot be used to repay loans themselves
- As the SALT token is not necessary anymore to use the lending platform, it makes the trading of the token not as viable as before.