Frequently Asked Questions (FAQ)
What is the Cryptyk Platform?
Cryptyk is a unique decentralized cyber-security and cloud storage platform that protects against all 5 main threats to cloud security (external, internal, viral, operational and surveillance threats). It utilizes hybrid blockchain technology and a self-propagating ecosystem that is powered by Cryptyk Tokens (CTK).
Why should I buy Cryptyk tokens?
Cryptyk Tokens (CTKs) are the fuel that drives the whole Cryptyk cyber-security platform and ecosystem. Enterprises and businesses wishing to use Cryptyk will need to transact using CTKs. However they can purchase tokens in fiat currency (eg: USD) which then gets automatically exchanged into CTK to drive the platform. Using this design, as platform use grows so too does demand for CTKs, which drives up their value. Please seek independent financial advice on the investment prospects of CTK tokens.
What is a Token Sale exactly?
Token Sale is a means of crowdfunding centered around crypto-currency, which can be a source of capital for companies. In a token sale, some quantity of the cryptocurrency economy is allocated to investors in the form of "tokens," in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. These tokens become functional units of currency when the minimum funding goal is met. There are generally two types of token sold; security tokens and utility tokens. The CTK token is a utility token.
How do I participate in the Pre-Sale Round of the CTK Token Sale?
The pre-sale round is discounted by 20% to 10 cents per token. It is for accredited investors only and KYC verification is required (handled by OnFido). US and Canadian residents will also have to complete accreditation verification (handled by VerifyInvestor). The minimum investment for the pre-sale round is US$10,000 or the equivalent in crypto-currency such as BTC or ETH. To participate you simply go to the CTK Web Wallet site. Then you sign up for a new account and can start purchasing CTK immediately. All currency transfer instructions are given in your web wallet account.
How do I participate in the Public Round of the CTK Token Sale?
The public round is for all non-accredited investors outside the US and Canada. The minimum investment is US$500 or the equivalent in crypto-currency such as BTC or ETH. To participate you simply go to the CTK Web Wallet site. Then you sign up for a new account and can start purchasing CTK immediately. All currency transfer instructions are given in your web wallet account.
How can I sell my CTK's and on what crypto-exchanges?
In the month after the public sale CTK tokens will be available for trading on the Orderbook exchange (orderbook.io) and several other exchanges.
When will the CTK token start trading on Orderbook?
This should happen within a month of the close the public round sale.
Can I buy Cryptyk security products with my CTK Tokens?
Yes you can. In fact as soon as you get your tokens you can spend 0.01CTK (or 0.0125 cents) to activate your free 2GB cloud storage account on our prototype platform. These user accounts on our prototype will be automatically upgraded to free accounts on our final product in Q1, 2019 when it is released. To this end all CTK investors will also be asked to the beta testing phase of the final product.
Where can I find the smart-contract code?
The smart contract for the CTK token can be viewed at https://etherscan.io/
The vesting schedule for the management team, advisors, Cryptyk foundation and the pre-sale investors can be viewed also at https://etherscan.io
What will Cryptyk do with my information provided during verification?
Cryptyk will keep the KYC data that you submit for our internal customer database and also for supply to the SEC if requested. However we will not share your information with any other company or individual. We will keep your data very secure on our own storage platform.
What payment methods can I use to buy Cryptyk Tokens?
You can purchase CTK with US Dollars via wire transfer to our account (instructions in Web Wallet). You can also purchase CTK tokens using your Bitcoin (BTC) or Ethereum (ETH) wallets.
What are the conditions for the token sale?
The terms and conditions for the token sale are well described in our terms page. https://www.cryptyk.io/terms/
What is Cryptyk Inc.?
Cryptyk Inc. is the developer of the Cryptyk platform whose responsibility is to ensure the ongoing development of the platform into a world class, industry-leading cyber-security and storage product. To this end, Cryptyk Inc. is based in San Francisco, USA, thereby offering excellent proximity to the leading coders, developers, and blockchain pioneers. Cryptyk Inc comprises of the core team of Dr. Adam Weigold, Raghu Kotha, Dennis McMasters, Mihkel Trink, Dr. Daniel Floreani, Indra Singhal, and Luke Lombe. The team is already growing and receiving interest from exceptionally talented individuals wishing to join the team. Following the Token event, the San Francisco office will expand rapidly. If you are interested in joining the team and helping to secure the cloud, then drop us a line at [email protected]
What is the Cryptyk Foundation?
The global Cryptyk community is a critical component of the entire CTK ecosystem and economy. For any permissioned blockchain technology to grow into a widely used open-source platform, it must correctly incentivize both customers and developers to use its crypto-currency. For this reason, one-third of all CTKs created (or 250,000,000 CTKs) are to be managed by the non-profit Cryptyk Foundation for the incentivization of customers and developers to participate in the CTK economy. The primary function of the Cryptyk Foundation is to grow the Cryptyk community globally and hold regular membership events to promote the CRYPTYK open source platform to both customers and developers. The Cryptyk Foundation will be managed at arm’s length to Cryptyk Inc, However, the success of both entities is inherently aligned to ensure full cooperation for mutually beneficial outcomes. The Cryptyk Foundation will be based in Adelaide, Australia and plans to open offices in New York (USA) and Zug (Switzerland).
Why is the Cryptyk Foundation based in Adelaide, Australia?
While Cryptyk Inc. has its corporate headquarters located in San Francisco (USA), the non-profit Cryptyk Foundation will have its headquarters in Adelaide (Australia). This location is reflective of the panpacific history of Cryptyk with half of the founding team originating from Adelaide. Australia also offers some unique benefits as a global community base compared to common European locations for crypto-currency entities. It offers a supportive regulatory environment for utility crypto-currencies and has a large, stable, transparent financial services and banking industry. There also exists untapped potential in Australia for a thriving crypto-currency community, and significant scope to acquire some large enterprise customers. Moreover, its close proximity to Asia means easy access to the world’s fastest growing enterprise security and crypto-currency markets. Nonetheless, the Cryptyk Foundation will develop a truly global community presence with additional offices planned for Zug (Switzerland) and New York (USA) by the end of 2018.
Why do you need to create a whole new crypto-currency?
Most ICO's are simply a method of raising capital. However the CTK Token sale is the first phase of the deployment of the Cryptyk product which is built on blockchain technology and needs its own digital currency to function. In addition to raising funds for product development, the Cryptyk Token (CTK) has the following additional functions and benefits:
(1) True Utility and Function - the CTK token is used for payments to blockchain miners who process crypto-algorithms to verify user access and security authentication functions when customers use the Cryptk platform. We need to pay miners to power our cyber-security functions and make our product work properly. We also need to pay them in our own crypto-currency so our product and ecosystem is not dependent on the market fluctuation of other currencies such as BTC or ETH. We need a truly new independent crypto-economy for cyber-security and storage.
(2) Viral Network Effects for Price Growth - because our primary market focus is on Financial Services, Banking, Legal and Investment markets, there is significant overlap between our investor base and customer base. When combined with the viral nature of our file sharing platform, numerous network effects can benefit customer adoption and growth of our platform. This in turn drives CTK demand and value. many of our customers are also becoming our investors and that is the sign of a healthy ecosystem. The Token sale is simply the first phase of our product deployment and customer adoption strategy.
(3) Community Development - the CTK economy has been structured to provide incentives to enterprise customers, individual consumers, software developers, miners and investors. Our customer partners will receive free CTK tokens to trial our product and CTK economics incentivizes them to stockpile tokens for ever-decreasing operational costs. In fact very large customers can immediately drive up the price of the token themselves. In addition software developer partners will be paid in CTK for building APIs and plug-ins for integration with our open-source platform for security and storage.
When will Cryptyk decide on which blockchain it uses?
While our prototype platform integrates with Ethereum, there are many more blockchain platform being developed that we can use for our final product. The two main candidates are now Ethereum and Hyperledger Fabric. We are in detailed partnership discussions with IBM on the viability of their Hyperledger product for the Cryptyk platform. Given the rapid rate of development in new public and private permissioned blockchains, we want to delay our design decision for as long as we can. We expect a final decision on our blockchain design to be made in June 2018. This is explained in more detail in our Business Whitepaper.
Will the Cryptyk Foundation have the ability to increase or decrease the total number of tokens from 750 million?
No. The economy is set at 750 million CTK forever. However the Cryptyk Foundation will be able to manage and control the rate of release of its tokens into the economy via customer trials and strategic developer payments. In this way the Foundation may act to moderate and manage investor speculation and market liquidity.
Can you provide details of your business strategy and marketing plan?
All details about our business model, marketing plan, customer adoption strategy and product roadmap can be reviewed in our Business Whitepaper
What is the Business Whitepaper ? I normally just get a white paper.
Given all the directors on our board have public company governance experience we decided to set a new standard in ICO documentation for the industry. The Business Whitepaper is a business document that details the Token Sale Offering, the technology, the business model, regulatory issues and provides financial forecasts and much more. This document is a step up from the normal white paper you get for most ICOs. The Information Memorandum is similar to a prospectus document for an IPO and is the primary document investors should read.
Then why do you also have a White Paper?
The Technology White Paper is a scientific style publication written by scientists including a PhD's in physics and a PhD in computer science. It is an old school document akin to the original bitcoin or ethereum papers. The White Paper is a publication detailing the technical design of the Cryptyk platform in detail, and the actual experimental results when we evaluated and tested our prototype platform with beta testers. This document is for those technology minded people who want to dig deep into the technology.
Do you have any customers?
We have been working with several strategic customers in the finance and banking space for over a year. They all participated in the 3 month testing of our prototype platform (as well as 40 invited hackers who tried in vain to blow our platform up). Our primary customer partner is Founders Federal Credit Union who is a Foundation Member and their CTO sits on our advisory board. More exciting customer partner and developer partner announcements will come over the next few months.
What is the minimum investment ?
The minimum investment for the pre-sale round is US$5,000 or the equivalent in BTC or ETH. The minimum investment for the public sale round is US$500 or the equivalent in BTC or ETH.
There is a 1 year vesting period on the Pre-Sale for US investors? Why?
The 1 year vesting period is due to the SEC Regulation D rules for exempt securities, and only applies to US and Canadian citizens / residents. This vesting period is written into the US version of the smart contract. Investors from all other countries purchase CTK Tokens with no vesting period in their smart contract.
The public sale is not open to US and Canadian residents and hence SEC regulations do not apply. Moreover, these are smaller investors who do not manipulate currencies in "pump-and-dump" schemes.
Ultimately our major investors will be pre-sale investors and we want them to be long term supporters. It is important to note that the Cryptyk team have a 4 year vesting period so we all have a committed long term view. We need our biggest investors to have that same view.
Do you offer any bonuses for large purchases during the Pre-Sale?
Yes. We offer 10% - 40% bonuses during the pre-sale round depending on volume. This equates to 37% - 74% ROI within 2 months as soon as the public sale goes live. Contact us at [email protected]cryptyk.com for more specific information about bonus packages.
You say you have a fully functional prototype platform built?
Yes. We have built a fully functioning prototype platform that was tested by over 80 users (50% customer partners and 50% invited hackers) for over 3 months last year. This test phase proved both the safe-to-hack security and low access latency of the platform as well as providing critical customer feedback for the final product design. All investors will be able to spend 0.01CTK of their purchase (ie: 0.1 cents) to activate their free 2GB storage account on our prototype platform as soon as they get issued their tokens. All investor activated storage accounts will be automatically upgraded to the final product version when deployed. The fact that even our prototype requires CTK gas to activate the product is yet another indicator of the high utility of our token.
What does a "Utility" token mean?
CTK Tokens are utility tokens, as opposed to the more common security tokens. Securities are similar to shares and are a direct investment in a company or asset class. Their prices are completely dependent on investor supply and demand and determined by market sentiment of company performance. In contrast, utility tokens are a direct investment into a product or commodity and have a functional use in addition to being simply an investment. The price of a utility is usually dependent on customer adoption and practical use of the product, much more so than by investor market sentiment. Consquently utility tokens not only have function and use, they also have much greater potential for long term price growth and market stability compared to security tokens.
Are CTK tokens ERC-20 compatible?
Yes, CTK tokens are based on the Ethereum platform and are ERC-20 compliant.
Where and how do I keep my tokens?
You can keep CTK tokens in any wallet that supports ERC-20 tokens including your free CTK Web Wallet. However you can transfer these to other wallets if you choose to. The following wallets are known to be compatible with Ethereum tokens (ERC-20 standard):
- MyEtherWallet (no download needed)
- MetaMask (Firefox and Chrome browser addon)
- Mist (Desktop)
- Parity (Desktop)
How many tokens will be available during the token sale and how many will be created in total?
The number of sold tokens created is forever capped at 750 million CTK's. The Token Sale involves the offer of 250 million CTKs to investors, or one third of the economy. The other two thirds are managed by Cryptyk Inc. and the Cryptyk Foundation.
If the hard cap is not reached during the token sale, will the remaining tokens be destroyed?
Yes, any unsold tokens will be destroyed reducing the total size of the economy below 750 million CTKs
Do you have a bounty program? Where can I find the bounty program details?
Yes, we do have a bounty program to help grow our online community. For more information about the program please email us at [email protected]
What will you do with the money raised?
We have a hard cap of 250 million tokens (or aproximately US$25 million). Our minimum raise requirement for the total of both rounds is US$3 million. Funds will be used to build a strong development team to take our prototype software to a full featured enterprise-class product with a year. Funds will also be used for business development, marketing and sales in order to create partnerships, build deep brand awareness, and grow our customer base to ensure our ongoing success.
When will Cryptyk start making money?
We aim to have a full featured market ready product in Q2 2019 after a 3 month trial with our alliance partners. Leading up to this release will be working closely with Alliance Partners and building networks with customers to ensure maximum uptake when we hit the market. We expect to be generating revenue and will release our first quarterly financial report in H1 2019. Positive cashflow and earnings are forecast to occur in H1 2020.
This sounds like a scam — how do I know this is legit?
(1) Even though we are a utility token our Token Sale event is fully compliant with US Security Law restrictions to ensure complete regulatory compliance, regardless of future SEC assessment of our token.
(2) Our documentation sets a new standard in detail, transparency, governance and professionalism for Token Sales and Crypto-currency offerings. (see investor information at cryptyk.io/token-information/).
(3) This is not just a 6 month project asking for a lot of money. We have been building this technology for over 2 years, have a fully tested prototype in the hands of customers, and we have already raised over $500,000 from experienced angel investors. We have capped our sale at $25 million because we do not need any more money to deliver the product on schedule.
(4) We have a solid experienced team of renowned technolog innovators, business managers and engineers. With the help of strong advisors and your support we have everything to further develop our products that will change the cybersecurity market for good.
What is soft-cap and hard-cap?
The pre-sale round has a soft cap of US$8 million. The public sale has a hard cap of US$25 million.
Is there a lock up or vesting period for the team and advisor tokens?
Yes, the vesting period for the management period is 4 years. The vesting period for advisors is 2 years. Also, pre-sale investors have a vesting period of 1 year due to SEC requirements for US citizens.
Are there any special bonuses?
Yes, there is a 10% bonus period on all purchases for the first 8 days of the pre-sale round. There is also a 10% bonus period on all purchases for the first 8 days of the public sale. Purchases during the next 7 days of the public sale receive a 5% bonus. There are also family and friend bonus programs for personal connections of the team.
Is there a minimum amount of tokens I can buy?
During the first 8 days of the pre-sale round there will be a minimum of 500,000 CTK for all purchases (ie: US$ 50,000). During the remainder of the pre-sale round the minimum investment amount reduced to US$5,000. During the public sale round the minimum purchase is US$ 250.
What’s the purpose of the Pre-Sale Round?
The purpose of our Pre-Sale round is to ascertain community interest regarding our platform and obtain pre-seed funds from institutional investors, VC funds and sophisticated investors. This will allow us to get our product development ramped up quickly obtain some market presence before launching our full-blown Public Sale.
Is Cryptyk available to provide the Information Memorandum in other languages?
We are working on a Chinese translation of the IM as well as a Japanese translation. As soon as it is completed it will be published in the Investor Information section of our web site.
Why hasn't Cryptyk got a large presence on common social media channels?
We aren;t your normal ICO or Token Sale. While we have been building our product and engaing with customers for 2 years, we have only started working on social media since mid-January 2018. This is because we are an enterprise focused business and we have been working hard on building our customer and developer community from the ground up. For the last 6 months we have been demonstrating our prototype platform and giving speaker presentations at numerous industry conferences relating to cyber-security, blockchain and fintech. See our corporate site at cryptyk.com to see what we have been up to. Many of our enterprise customers are becoming our investors in the pre-sale round.
What Social Media Channels is Cryptyk on?
Now we are launching our Token Sale and our public sale is in early March we are starting to engage the wider crypto-currency and ICO market. We have groups and channels already set-up and growing on Facebook, LinkedIn, Twitter, Telegram and Discord. Links to these are at the bottom of the page in the footer section.
I am a US or Canadian citizen. Can I participate in the pre-sale round?
Yes you can participate in the pre-sale round after you somplete KYC and Accredted investors verification.
I am a US or Canadian citizen. Can I participate in the public sale
Unfortunately, no. Even though we are a utility token we have decided to adhere to secrutiy law regulations in the US and Canada. US / Canadian citizens and residents are not allowed to participate in the public sale due to US Security Law restrictions. We fully respect all country laws in all locations we operate, and urge you to obtain more information regarding specific financial laws in your jurisdiction.
What countries are banned from both rounds of the Token Sale?
Citizens and residents from China and Brazil are not allowed to participate in the token sale at all. Note that until recently South Koreans were also banned. However recent guidance about crypto-currencies in South Korea have changed and now South Korean citizens and residents are allowed to participate in both rounds of the Token Sale. Note also that Hong Kong residents are allowed to participate in the Token Sale.
I am an European (EU) citizen. Can I participate in Token Sale?
Yes you can participate in both the pre-sale round and public sale round.
I am an Australian citizen. Can I participate in Token Sale?
Yes you can participate in both the pre-sale round and public sale round.
I am from Asia, Africa or Russia. Can I participate in Token Sale?
Yes you can participate in both the pre-sale round and public sale round, as long as you are not a Chinese resident / citizen. South Korean citizens can now participate too.
I am from South America. Can I participate in Token Sale?
Yes you can participate in both the pre-sale round and public sale round, as long as you are not a Brazillian resident / citizen.
I am from China or Brazil. Can I participate in Token Sale?
No you cannot participate in either the pre-sale round and public sale round.
Where can I find more detailed information?
Please visit the Investor Information page for the complete Information Memorandum, Technology White Paper, Pitch Deck, Executive Summary and Token Sale Terms & Conditions.
What about specific details about the company, technology and token sale mechanics?
If you participate in the token sale and create a CTK Web Wallet you will have access to technical support for any purchasing issues via Intercom which is integrated into the wallet. If you have any specific questions about the company, the technology or the token sale structure please email us at [email protected] and we will respond to you promptly.