SALT (SALT) Sees Flash Crash On Binance As Price Continues To Fall
Cryptocurrency SALT (SALT) experienced a flash crash as its price dropped rapidly from $1.17 against the US dollar to a low of $0.4 on Friday.
Against its main trading pair BTC, SALT prices tumbled from 0.000149 BTC to 0.000056 BTC, losing about 74% of its value in minutes. The market was able to recover and trading remains in a bearish trend.
After briefly hitting below 50 cents, the token currently trades at $1.05 against the US dollar and is likely to see more declines as sentiment head south.
According to market data, SALT currently trades over 5.88% percent higher over its price in the last 24 hours. On the hour-to-hour charts, the token is trending south.
It is also overall in the red over the 7-day period, now posting losses of nearly 14.5 percent.
The majority of the coin’s liquidity is generated on the world’s largest cryptocurrency exchange by volume.
Binance lists SALT in only two pairs: against BTC and ETH. Combined, the two pairs account for nearly 50% of the volume traded on the site.
At the moment, market data at CoinMarketCap shows that SALT/BTC accounts for 42.96% of volume, while SALT/ETH accounts for 5.78% of the volume. That brings it to $48.74% of the token’s intraday trading volume.
The token traded at an all-time high of $17.74 against the US dollar on Dec 29, 2017. It experienced a decline like all other crypto assets in 2018 but has been in a downtrend since May 3 when it traded at $4.55.
It has therefore lost over 90% of its value since that all-time high price. Current prices are similar to those at the end of June or mid-July when it traded at around $1.00 against the US dollar.
SALT is ranked 122nd on CoinMarketCap and has a market cap of $72.5 million at the time of writing. Its intraday trading volume is $6.63 million.
The flash crash happened on Binance as it saw increased trading activity following announcements related to changes that will soon be rolled out.
There’s some kind of negativity surrounding the SALT platform, exemplified more by comments made in one of the Reddit threads.
The post ostensibly warns users about a possibility of the project that aimed at being the best lending platform as being an exit scam.
Secured Automated Lending Technology (SALT) is a crypto start-up that was designed to offer its services in the US only and is a membership-based platform that provides lending and borrowing services over the blockchain.
Users are allowed to leverage their digital coins to secure loans. These loans are obtained with a user’s cryptocurrency holdings being used as collateral.
The project’s website simply states that: “The SALT Lending platform is a great option if you want or need to make real-world expenditures, but don’t want to lose the potential gains from your digital currency holdings.”
It appears to have become popular since its introduction late last year. The site claims to have handled more than $50 million in serviced loans.
It further states that its services are accessible in over 14 jurisdictions all over the world. To underscore its popularity, it says that it has over 64,000 users currently utilizing its platform.
However, comments in the public forum suggest all is not well for this young project. Various reasons are advanced to alert the community of what could be wrong or is about to go wrong.
For instance, it has been pointed out that the CEO and founder made an exit a few days ago.
The veracity of this claim is reinforced by the appointment of an interim CEO, according to a tweet on the crypto’s Twitter account. It has announced that Bill Sinclair, who has been the CTO, takes over as interim CEO and President.
It has also been argued that there no longer is that “amazing arbitrage opportunity” that allowed members to purchase SALT tokens on exchanges and then go ahead and use it to pay off the loan at prices nearly ten times higher the price of a SALT token.
It has always felt to some like the business model would not be sustainable.
But SALT has promised new exciting changes and advantages, something critics say is a blinder meant to buy the team sometime.
According to a post on Medium, the SALT team has highlighted the coming days will see the unveiling of dynamic pricing of the SALT token to echo the current trends in the lending industry.
It has also planned to improve the ability of users to use the token to adjust individual interest rates, as well as doubling their lending jurisdictions after approval.
The new CEO has tried to sound optimistic for the future of the platform. He stated this on his new role:
“I’m looking forward to building a bridge of continued innovation between traditional financial services and blockchain,” Bill shared. “It’s been a pleasure to work with such smart and dedicated people, and we’re just getting started.”
The negativity may have led to panic within the community, sending the coin plummeting. The swift recovery, however, suggests that the project’s team can turn that around.