Decentralised cloud storage provider Storj Labs has announced it will be selling digital tokens held by the company will converting to an Ethereum-based application token.
The company hopes the token sale will enable users to participate in the Storj network and gain access to related services from the company.
Individuals who currently hold Storj tokens will be able to convert into the Ethereum-based token on a one-to-one basis. The token sale will not increase the total supply of tokens.
“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,” Said Shawn Wilkinson, CEO/CTO Storj Labs.
“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. We’re looking forward to collaboration and accelerated innovation made possible with this token sale.”
Global demand for cloud storage
The Storj token sale is one of the first times a token has been migrated from the Bitcoin blockchain to the Ethereum blockchain. The company will move to the Ethereum ERC20 from the Counterparty protocol on the Bitcoin blockchain.
Analysts are predicting that the cloud storage market could pass $65 billion by 2020.
Demand is being driven the desire for lower costs, increasing adoption of cloud technologies as well as concerns over privacy and security.
Storj Labs use a P2P network and community, based on ‘farmers’ who rent out their hard drive space, to ‘provide a secure, cost-effective and high performance alternative to traditional cloud storage solutions’.
The user data is stored in a decentralised way using state-of-the-art cryptography and Ethereum blockchain technology.
“I believe that Storj Labs is one of the most established blockchain-based enterprise plays today,” Iterative Instinct Management LP co-founder Chris Dannen.
“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.”
Full details of the token sale can be found here.