ATLANTA, April 19, 2017 /PRNewswire/ -- Storj Labs, the world's largest decentralized cloud storage provider, will sell a number of digital tokens held by the company concurrent with an upcoming conversion to an Ethereum-based application token. This Token Sale enables users to participate in the Storj network and to receive related services from Storj Labs. Storj aims to be as transparent as possible with its supply and selling Tokens held by Storj Labs will enable Storj Labs to advance product development and speed the rate of innovation in cloud storage. Current Storj token holders will convert into the Ethereum-based token on a one-to-one basis, and the Token Sale will not increase the total supply of Tokens.
Analyst predictions estimate the cloud storage market could surpass $65 billion by 2020, a 28 percent CAGR (source: MarketsandMarkets Research). Global demand for cloud storage is being driven by a number of factors including: desire for lower costs; increasing adoption of cloud technologies; and security and privacy concerns. Storj Labs develops and maintains a peer-to-peer network and community of "farmers" (users who rent out their hard drive space to other users or customers) to provide a secure, cost effective and high performance alternative to traditional cloud storage solutions. Storj users' data is securely stored in a decentralized manner using state-of-the-art cryptography and Ethereum blockchain technology.
Storj Labs announced a migration to the Ethereum ERC20 standard from the Counterparty protocol on the Bitcoin blockchain. The goal is to reduce network transaction fees for the community and increase functionality and usability. Storj is among the first tokens being migrated from the Bitcoin blockchain to the Ethereum blockchain, which provides more advanced capabilities and a stronger ecosystems of participants.
The Storj Labs Token Sale will allow the company to accelerate product development through user incentives, while promoting developer adoption and network growth. Token Sales have gained significant momentum because of their ability to support development of distributed applications and networks based on blockchain technology.
"I believe that Storj Labs is one of the most established blockchain-based enterprise plays today," said Chris Dannen, Co-Founder and Partner at Iterative Instinct Management, L.P., the NY-based crypto-asset fund. "I'd expect this Token Sale to be among the top five Token Sales to date on Ethereum, and it's because no one is doing storage like this. If Amazon hasn't taken notice, they soon will."
"The Storj Labs community is growing rapidly. We've seen incredible growth of both the number of nodes renting out space and bandwidth to the network and users of our service. The Token Sale allows us to provide this community with the opportunity to participate in our network, as well as accelerate product development to meet this demand," said Shawn Wilkinson, CEO/CTO Storj Labs. "We're looking forward to collaboration and accelerated innovation made possible with this Token Sale."
Full details of the Token Sale will be disclosed on May 19, 2017. More information can be found here: www.storj.io/tokensale.
Storj Labs recently exited their beta, transitioning users of the platform to commercial support, billing and payment plans, in addition to channel partnerships with Heroku and Microsoft Azure.
One or more affiliates of Iterative Instinct Management, L.P. is expected to participate in the Token Sale and is an investor in Storj Labs. The trading strategies and investments of such affiliates are subject to change in their entirety at any time.
About Storj Labs
Storj Labs provides decentralized cloud storage and gives users more control over their devices and data by providing an open-source cloud platform: Storj. The company aims to become the largest, most innovative, cost effective, and high performance cloud storage provider by utilizing spare hard drive space provided by its community members. For more information on Storj Labs, visit https://storj.io/.
SOURCE Storj Labs