SAN FRANCISCO, California, April 20, 2020
Cryptyk Inc, a developer of decentralized cloud storage solutions, has announced today that it will pause all consumer-focused product development to focus on large custom storage solutions for the enterprise market. This market pivot is due to recent regulatory guidance that the company has received from the SEC regarding the possible interpretation of utility tokens such as CTK as securities.
Cryptyk CEO Dr. Adam Weigold today commented that "we are extremely disappointed to have to pause development of our much anticipated consumer products which were expected to launch in July later this year. However we have received direct guidance from the SEC that using a public blockchain to power cloud storage products for consumers is likely to mean that the underlying CTK digital token is classified in the US as a security. This would make the management of the CTK economy unviable without breaking numerous US securities laws. As a US company there is simply too much risk for the company and its directors to launch such a product in the US, and ultimately it may require a non-US product to be developed separately from a US consumer product."
Dr Weigold added that "until we formulate a legally viable strategy for consumer cloud storage products for both US and non-US markets we have decided to focus on building enterprise solutions using private blockchain networks such as Hyperledger for security auditing processes. This will ensure that Cryptyk Inc as a company generates revenues and profits for continued operation. Although the enterprise market is not as scalable or profitable as the global consumer cloud storage market, focusing on this market will improve our technical capabilities and ensure the company survives until more clarity surfaces on the consumer product front. While this is obviously extremely disappointing news for all CTK Token holders, we will be thinking outside the box and exploring all possible ways to launch consumer products powered by the CTK Token. Critical to making a correct strategic decision for the consumer market will be receiving more concrete guidance from the SEC on utility tokens in the US. As soon as we receive clearer and more concise regulatory guidance we will announce a new strategy for consumer-focused cloud storage products."
Cryptyk Cloud Storage Products: www.cryptyk.com
Investor and CTK Token Information: www.cryptyk.io