MIAMI, Florida, January 2024
Cryptyk Inc, a developer of blockchain based cloud storage technologies, has announced that plans for its long awaited consumer cloud storage product range have restarted with numerous products being rolled out over the course of 2024. The new product strategy and business pivot has been detailed on the recently updated Cryptyk Cloud website at cryptyk.com.
Cryptyk originally planned to release its crypto-powered cloud storage products for consumers (driven with its CTK digital tokens) in 2020 / 2021. However just before the end of the product development phase the company received strong warnings from US regulators at the SEC that this product might violate US securities laws, even if it charged US customers in fiat currency instead of crypto. Given that the implications of these warnings were that the company could find itself in US federal court facing massive fines and the directors of Cryptyk Inc. could easily end up arrested, the company decided to focus on the enterprise market with products that did not use its CTK digital tokens to power the blockchain functions. As a US based company Cryptyk decided to take the cautious or low-risk option and put consumer products on hold until it received more clarity from the SEC. Until then it would focus on enterprise customers only which did not utilize its CTK digital currency.
In late 2023 the company finally received a firm “legal opinion” or decision from the SEC regulators on the legality of its planned consumer products …. and the news was not good. The SEC did indeed view Cryptyk’s planned consumer products as a violation of SEC regulations and would deem CTK Tokens as securities if such products were ever launched in the US. However the SEC regulators also gave the company some critical guidance as to how to modify the product design and restructure the business so as to avoid these serious legal and regulatory problems. Since then the company has been busily redesigning the product and business strategy with a marketing pivot that includes a new revenue model. Furthermore a new non-US entity will be created in the next few months to manage all non-US cloud storage customers and the CTK Token economy.
Key to the company’s new consumer product design and business strategy is that it will not involve US cloud storage customers either using CTK tokens or participating in the CTK digital currency economy in any way. More importantly all non-US customers will be allowed to use CTK tokens that will enable them to receive some more advanced product features and slightly lower monthly operating costs. Additionally, an exclusive Cryptyk Club will be formed that will offer serious discounts and many other benefits ….. and the only way to pay for membership is with CTK Tokens (for non-US customers) or participating in beta testing (for US and non-US customers).
Cryptyk Chairman Dr. Adam Weigold commented today that “sometimes bad news is much better than no news at all. That has certainly been the case for our consumer product strategy with the US regulators. As a result of a lack of regulatory clarity our consumer product plans have been stuck in limbo for the last 3 years. Now that we have some concise understanding of the US government strategy on crypto-powered cloud products, we are able to redesign the product and restructure the business so that we can finally launch a range of transformative Web 3 cloud products for the massive consumer market. It has been a hard few years for not only the company but for the CTK Token price and the 3200 plus CTK Token holders around the world. I would like to thank all CTK Token Holders for their incredible loyalty to our technology and digital currency. Despite the obvious prolonged drop and stagnation in the value of CTK due to the lack of token utility without consumer products, the daily trading volume of the CTK Tokens has steadily increased to over 20M CTK / day (or US$40k / day). This strong increase in trading volume over the last few years has positioned us incredibly well for the next 6 – 12 months when our consumer products will be rolled out to finally add true token utility to the CTK economy. We expect the price of CTK to grow strongly this year from Q2 onwards when our first beta testing phases will begin. As more non-US cloud storage users adopt our Web3 products the greater the upwards pressure on the CTK price will be.”
Dr Weigold added that “another important market consequence of our cautious approach is that our only competitor for decentralized file storage of unstructured data is also located in the US. However they decided on the more immediate but high risk strategy of a consumer product launch in 2019 and consequently will have some serious regulatory and legal problems to contend with over the next year or so. Cryptyk will not only have a much faster and more secure product range released to the consumer market, it will have no regulatory restraints limiting its growth. 2024 is the year that Cryptyk and all our loyal CTK token holders have been waiting for. I recommend that anyone interested in decentralized cloud storage and consumer Web3 products should watch this space.”
Cryptyk Web3 App Products www.cryptyk.com
Investor and CTK Token Information: www.cryptyk.io