Need to borrow against your cryptos?

Interesting new lending concept...........................From Greg Wilson @ palm beach

Crypto Rich but Cash Poor? Here’s How to Tap Into Your Profits
By Greg Wilson, analyst, The Palm Beach Letter
In 2010, Elon Musk faced a tough decision. Should he sell some of his pre-IPO Tesla shares?
Musk is the CEO and founder of Tesla Motors. Today, he’s worth more than $13 billion. But in 2010, the billionaire was “broke.”
At the time, Musk was going through a divorce. He had a $200 million net worth but invested “his last cent in his businesses.”
In a 2010 divorce proceeding, he told the court that he had less than $650,000 in liquid assets left:
About four months ago, I ran out of cash. I could have either done a rushed private stock sale or borrowed money from friends.
Musk borrowed the money from his billionaire buddies. It was a wise choice. Tesla shares have gone up over 10 times since the IPO.
But what if you’re blockchain rich and don’t have any billionaire buddies?
It’s a dilemma called “asset rich but cash poor.”

Say you’re a retired couple with $500,000 in home equity but only $1,000 in savings and no other liquid assets. You’d also be asset rich but cash poor.
Today, we’re seeing this dilemma emerge in the cryptocurrency space.
Many of our subscribers are sitting on large gains in their portfolios.
For example, if you bought 100 coins of one of our recommendations last year at $9, you’d have turned that $900 into $35,000 today—a nearly 4,000% gain.
But you could be facing a dilemma…
Say you needed the money for an emergency or to take a vacation.
How do you access that cash without selling your coins and taking a tax hit or missing out on future gains?
Recently, I spoke to the CEO of the company solving the “blockchain rich but cash poor” problem. Best of all, you don’t need any billionaire buddies to take advantage.
Secure Automated Lending Technology
The solution I’m talking about is a company called Secured Automated Lending Technology (SALT).
SALT was started in September 2016. The platform allows people who own blockchain assets to use them as collateral for cash loans.
The CEO is Shawn Owen. He got his start in the restaurant and bar industry. He also happened to be an early bitcoiner, getting involved in 2010.
Shawn combined his passions to found the Southern Hospitality restaurant in 2012. It was the first brick-and-mortar business to accept bitcoin in Colorado.
During this time, Shawn started hosting meetup groups. In those groups, he learned everything he could about bitcoin and money.
At one meeting, a colleague suggested lending against bitcoin as collateral. The idea for SALT was born.
“It seemed obvious that this was a service that the industry needed as a whole,” Shawn said.
Recommended Link

How SALT Works
Without getting too complicated, the SALT platform automatically stores your cryptocurrency as collateral and enforces all terms of the loan contract.
And because you use your blockchain assets as collateral, SALT doesn’t require a credit check.
Let’s walk through an example…
Say you own the 100 coins of the crypto I mentioned above… and you want to lend against them. At a price of $350, that’s $35,000 in blockchain assets.
As an example, let’s say you borrowed 80% of those assets. That would give you a loan of $28,000.
I’m sure you’re wondering to yourself now… “What happens if the value of my blockchain asset drops?”
The SALT platform constantly monitors the value of the collateral. Shawn says the contract won’t act until the loan-to-value ratio reaches 110%.
At that point, you have two options:
• You could add more collateral, or…
• You could sell some of your collateral to pay down the loan.
If you fail to pay, you get to keep the loan, but you lose all your blockchain assets.
Shawn said interest rates will begin in the 10–12% range. And loan durations will be 12 months.
But as the platform builds out, the rate range will broaden and the loan duration will lengthen.
Shawn says all of SALT’s lenders meet U.S. Securities and Exchange Commission (SEC) guidelines for accredited investors.
But he added that hedge funds and small banks are lining up to lend against blockchain assets. And he’s already talking to even bigger players.
How to Get Started
To use the SALT platform, you need to become a member. And that requires buying a SALT token.
SALT will roll out its beta version in September. And the goal is to have a fully functioning SALT platform up and running by the end of the year.
Lending will be just the start…
Shawn revealed to me that one of the company’s future projects includes a smart debit/credit card… backed by your blockchain assets.
SALT is an innovative company in the rapidly expanding blockchain space. You can learn more about the company here.
We’ll continue to introduce you to the best cryptocurrency products and services coming to market.
Regards,

Greg Wilson, Analyst
Palm Beach Confidential