2022 was a very turbulent time for crypto investors as it witnessed the collapse and bankruptcy of some major industry players like Terraform Labs, Voyager Digital, Celsius Network, Three Arrows Capital, FTX, and BlockFi. The FTX bankruptcy had a widespread impact and affected various companies, including Genesis Global Trading, — a sister company of CoinDesk.
While the FTX saga unfolds, companies that have been affected are trying to pick themselves up and keep their doors open. One of these companies is SALT Lending.
SALT is a Denver-based lending company founded in 2016 that allows users to borrow money using crypto as collateral.
SALT Lending has closed a $64.4 million Series A funding round from a share sale to accredited investors less than three months after its planned sale fell through due to the implosion of centralized crypto exchange FTX. SALT will use the capital toward new products and its growth strategy, according to a draft press release provided to CoinDesk.
In November, Bnk To The Future, an online investing platform, cancelled its planned acquisition of SALT Lending after the latter announced that it would temporarily suspend withdrawals and deposits on its platform due to an unspecified exposure to FTX. This new funding was to recapitalize SALT’s balance sheet and capital reserves. Subject to regulatory approval, SALT is working to return to full operations during the first quarter of this year.
SALT has spent the aftermath of its reopening talking to its user base to try and restore confidence. The company spokesperson in an interview with CoinDesk made it clear that they are now fully operational and more transparent than ever.
The events of the past year have brought about an atmosphere of extreme caution in the market. And this has not been good for lending platforms since they appear to be the most affected during the bear market. There is still some optimism that greater transparency will help bring back trust in crypto lending platforms.
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