In this edition of 'Startup Spotlight,' we direct our attention to CryptoLock, a standout company navigating the complex world of cryptocurrency protection. As the digital currency landscape becomes more intricate, CryptoLock has built up a platform with services including digital wallet monitoring and protection and recovery of stolen crypto assets. We engage in a detailed dialogue with Roger Ying, the founder of CryptoLock, who offers a thorough insight into their innovative AI technology designed for Web3 and crypto protection. Throughout the interview, Roger discusses their commitment to tackling the challenges of crypto asset recovery and enhancing security in the world of digital currency. Join us as we dive into their unique strategy, collaborative efforts, and the ambitious targets they aim to achieve in the coming year.
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Edward: Can you briefly introduce CryptoLock and the services you offer?
Roger: CryptoLock specializes in AI-driven Web3 and Crypto Safety, focusing on security, compliance, and recovery. Essentially CryptoLock has built up a marketplace AI platform offering digital wallet protection and crypto asset recovery. We put all the latest security products, tools and services in one place. This can include recovery services, such as blockchain analytics, blockchain monitoring, cyber forensics, private investigation, smart contract protection, expert witness, litigation funding and more services and tools offered by our security partners.
With so many services and tools available on the platform, our AI not only educates and addresses queries but also guides users to appropriate security tools and services accessible directly through the AI. Additionally, our subscription includes a warranty on crypto asset recovery services, should other measures fail. From our experience in being involved in over $30M worth of recovery cases, the first $10K worth of services you spend is the most important. And our warranty covers that!
Edward: What is the core problem CryptoLock is addressing?
Roger: There's a significant lack of knowledge about crypto security tools and compliance among crypto users and startups. Moreover, 99% of crypto users are uncertain about the steps to take after losing their crypto: Who do you call? What do you do?
Edward: What motivated the establishment of CryptoLock?
Roger: My co-founder and I, with backgrounds in blockchain, FinTech, and InsurTech, noticed a gap. Working in cyber insurance, we saw insurers struggle with crypto-ransom demands. The cost and complexity of investigating and retrieving crypto, combined with the limitations and high costs of crypto insurance, presented a unique opportunity for us.
Edward: In a concise sentence, what is CryptoLock's primary mission?
Roger: CryptoLock’s mission is to makeWeb3 safe. This is important, as no economy or microeconomy can prosper without security. Our vision is to tokenize crypto security: we aim to become the Ripple of Security.
Edward: What do you mean by tokenizing crypto security?
Roger: CryptoLock is building an entire community across the value chain of security, compliance and recovery, where crypto asset owners can earn or purchase our tokens, and where they can use the tokens in our marketplace of security products for cyber and digital wallet protection as well as crypto asset recovery.
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Edward: With the numerous solutions in the FinTech sector, how does your product or service differentiate itself?
Roger: We approach Web3 security as a coopetition*. Our AI facilitates the discovery and monetization of innovative tools and solutions, and uniquely, our warranty covers crypto recovery services – a first in the market.
Note: Coopetition is, by definition, collaboration between business competitors, in the hope of mutually beneficial results.
Edward: How do your clients pay for the services?
Roger: Our members pay a monthly or annual fee for our AI and wallet protection (including the warranty). They can also choose to top-up credits for use in purchasing partner security tools on a pay-per-use basis, e.g., wallet scanning, smart contract scanning, tracing, telegram monitoring and more. For non-members who have lost their crypto assets, we will assess each case and estimate the cost for recovery services.
Edward: Can you share with us the business traction CryptoLock has achieved so far?
Roger: On average, we are signing 1-2 new partners per week who want to integrate with our AI. To date, we are managing over $30M of crypto asset recovery cases and we have partnered with experts, such as the former head of global investigations at Chainalysis.
Edward: What are the primary projects or initiatives that your team is currently focused on?
Roger: We're beta testing our AI at www.cryptolock.ai. Additionally, we're actively forming partnerships and integrating more tools for our end users, accessible via our credit system. A token offering is planned for 2024.
Edward: As 2023 draws to a close, what trends or challenges stand out in your industry?
Roger: Most crypto hacks, scams and rug pulls are avoidable. The challenge lies in raising user awareness about these readily adoptable tools. Most users would use them in a heartbeat once they understand how easy they are to use. We are seeing huge innovations in this space.
Edward: Do you have specific industries or groups in mind for collaboration?
Roger: We're looking to further collaborate with four types of partners: Web3 security tool providers, virtual asset service providers, law firms in various jurisdictions, and global cybersecurity investigation companies.
Edward: How can partnerships amplify CryptoLock's growth and capabilities?
Roger: Collaborating across the industry is vital for growth in web3 security, a branch of cybersecurity. It’s about increasing awareness and utilization of these companies' offerings. We’re even helping enterprise cybersecurity companies make their offerings available to retail users, who, in most cases, are the ones who need these services the most!
Edward: What are the key objectives and milestones CryptoLock is targeting in the upcoming year?
Roger: For 2024, we aim to reach 1 million registered users and manage $1 billion in crypto recovery cases.
Edward: For readers keen on learning more or discussing partnerships, how can they contact you?
Roger: Please reach out via roger@cryptolock.ai.
QIDS Venture Partners is dedicated to supporting and catalysing the developments in FinTech by sharing with our audience FinTech trends and interesting FinTech business ideas. You may forward this article to other investors who are interested in FinTech as well. If you need more information or would like to arrange a meeting with us, please feel free to contact our Managing Partner Edward Shen via LinkedIn or email.
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