Crypto Lending Firm SALT Nets $64.4M to Resume Business Operations
SALT announced reopening business operations following their suspension after the calamitous FTX collapse in November 2022. The firm announced raising $ 64.4 million in the concluded Series A round. The announcement portrays a comeback for a firm despite its planned sale three months earlier failing following the FTX implosion.
Successful Funding to Expedite Comeback
The successful funding involved selling shares to accredited investors, yielding $64.4 million for SALT Lending. The firm is set to utilize the capital raised towards delivering new products constituting SALT’s new growth strategy.
The successful funding round follows the termination of the planned acquisition by BnK To The Future in November 2022. The withdrawal of acquiring SALT by the online investing platform occurred following the sudden FTX collapse. The firm suffered unspecified exposure to collapsed FTX compelling it to pause withdrawals and deposits.
Recapitalizing SALT’s Capital Reserves
The latest funding is to recapitalize the SALT’s financial health position through improved capital reserves and balance sheets. SALT’s representative revealed that its comeback is scheduled to restore operations before April after regulatory approval.
The Denver-headquartered firm specializes in advancing blockchain-backed loans, with the borrowers securing the facilities using cryptos. The firm’s representative portrayed 2022 as a crypto winter where key lenders, including BlockFi, Genesis Global Trading and Celsius Network, collapsed.
Prolonged Crypto Winter in 2022 Made SALT’s Temporarily Shutdown Inevitable
While lenders’ downfall was attributed to the restrictive nature of the bearish crypto market, the contagious wave exposed insolvency. The firm’s executive decried illegal reloaning of users’ funds. In particular, the wave of downfall portrayed the affected crypto lenders suspiciously.
SALT interim chief executive Shawn Owen regretted that the crypto industry confronted a perfect crypto winter that swept several lenders into liquidity crisis ditches. Besides BlockFi, FTX and 3AC, the crypto ecosystem saw Celsius Network, Voyager Digital and Terraform Labs. Owen admitted that SALT lacked immunity to the bearish market forces.
Owen restated SALT’s devotion to navigating the strangling market conditions. Primarily, Owen indicated that SALT would emerge from the unprecedented crypto bear trend. Beyond the commitment to overcome the existential threat, Owen affirmed SALT’s preparedness to tap into emerging opportunities as the crypto industry recovers from FTX implosion.
SALT’s Operations Exposed to Series of Collapse in 2022
Owen reflected on the crypto market in 2021 and 2022, regretting that the latter featured a cold winter that plunged several operators into a liquidity crisis. The interim executive alleges that the collapse of Celsius and Three Arrows Capital made it challenging for crypto lenders to navigate the exposure.
Owen’s confession arises from the struggle portrayed by SALT to operate despite its earlier merger agreement with the BnK TO The Future. He added that the agreement became untenable as both could not afford to acquire the Celsius assets. The inability to find a solution for the fallen high-yield lender.
Owen’s statement lamented that the calamitous FTX collapse in November caught SALT unawares. He indicated that calling off the merger was inevitable, enabling SALT to refocus on the contagion challenge. Owen disclosed that the spreading FTX contagion prompted SALT to suspend operations to safeguard its customers’ digital wealth.
Prioritizing Transparency in SALT’s Comeback
The temporary halt of operations would facilitate reassessment since the SALT design portrayed the shutdown spooked its user base. Owen indicated that the awareness of the users’ concerns explains the devotion to holding conversations with the base. Conversations with the disappointed enabled SALT to assemble a platform to restore users’ confidence.
Owen challenged the crypto lenders to devote themselves towards winning back the concerned customers. Its accomplishment would involve exercising transparency and proof of reserves, as noted by Owen, to facilitate the building surplus.
SALT’s chief executive restated the commitment towards transparency to avert feeling exploited. Also, Owen indicated that clarity was attainable by disclosing the latest development rather than speculating on the actual outcome. The interim official lamented that unless SALT sustains transparency, users were questioning the austerity of crypto lenders to overcome bearish sessions in future.
Editorial credit: Jarretera / Shutterstock.com
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
