As per the statistics shared by BitTirbute.com the following the astronomic crash of one of the biggest crypto exchanges in the market (FTX), many crypto companies were also well on their way out of the door.
Almost 130 other entities filed for Chapter 11 bankruptcy along with FTX, one of these companies was almost the crypto lender Salt. The company, while a major player in the crypto game at the time, had frozen all withdrawals in Mid-November.
Although the move from them was a smart one given the very difficult situation that the market was in, too many, it looked like an indication that the company was going under. Suffice it to say that it did not rub well on traders when they were unable to take their money out of the service.
However, a major change brought about one of the biggest revivals of any crypto company that made it through Crypto winter. The firm was proud to announce that they had managed to secure $64.4 million in their latest round of funding.
As a result of the funding that they have secured, they will be able to start their operations again soon. With a strengthened balance sheet and better capital reserves, Salt is confident that it will be able to weather the storm.
Getting the Money to Start Over
One of the most impressive things about this entire story is how Salt actually manages to get money to restart its operations despite the very real issues happening in the crypto market.
Despite the market being at a serious low and one of the biggest crypto exchanges being swept under the rug, it was very easy for Salt to become just another crypt company that happened to bite the dust.
However, instead of just accepting what happened, it instead came back to start again.
They were able to generate over $64 million in Series A capitalization, promising investors shares of the company’s preferred stock. So they will be able to choose from the company’s selection of cryptocurrencies.
The only thing that the company is waiting for is approval from the relevant authorities, which will allow them to resume their business. And when all of the paperwork manages to go through, then they will be able to finally allow their traders to start trading again.
Restoring the Company Piece by Piece
The only real issue that comes with suspending a business for a few months is that there are many consequences that could possibly make starting up more difficult.
One of the major consequences that have come as a result of Salt pausing its operations was that it lost its California operating license. Since the company failed to meet the relevant requirements, it was suspended and now needs to be renewed.
Along with looking to get authorization for its Series A recapitalization, the firm is also looking to get its license back. And all of this will come ahead when they finally open up shop, possibly by the end of the first quarter.
Surviving the Crypto Winter
Crypto winter will be an event that people will remember for years when they look back at cryptocurrencies, as it is a pivotal time for cryptocurrencies since it led to many massive crypto markets going completely bust.
Some of the major players that shut their doors during that dreaded months include FTX, Celsius Network, Voyager Digital, BlockFi, and Genesis. All of these companies have filed for bankruptcy, and so far, none of them seem to be making a comeback.
Even though Salt did not file for bankruptcy, it did suspend transactions, which made it look like they were going bust. While the trend of crypto companies filing for bankruptcy has done anything but stop, it is still nice to see one company managing to make it back to its customers.
According to the announcement by the team, they will be up and running by the end of the first quarter, making it one of the few crypto companies that people are now rooting for.