SALT, a blockchain company that deals with loans reported a tremendous spike of loan requests on February 20. It announced that new memberships, loan requests and SALT purchase are put on hold for the time being, as the team addresses the demand situation. Naturally, the existing clients will be able to fully operate the platform.
The company based in Colorado and dealing with blockchain-backed loans since late 2017 has already issued $23 mln worth of loans. Without giving any cryptocurrency and by simply using it as a collateral for cash loans, members are able to put their profits to use in decentralized currency markets, for example to pay off a debt.
Though the platform itself is not cheap - the focus group are those with 6-figure salaries and a net worth of millions of dollars. Despite the fact the minimum loan is $5,000, the number of members is already over 60,000 and it seems such model is working pretty effective. But the issue of scalability now became a bottleneck in the system.
Other lending programs abound within the ecosystem: Coinloan is a crypto asset collateral lending program that offers significantly smaller loans and easier access; Ripio’s RPN Global Lending is more peer-to-peer in its approach; Ethlend of Switzerland works off of the Ethereum blockchain, and touts its decentralized features.