Much awaited KodakCoin was supposed to launch on 31st January 2018. Instead, the iconic brand announced a night before that they need several more weeks before launching the ICO. They clarified that they need some more time to understand their customers better. They intend to be well-prepared while entering the accredited investor verification phase.
Kodak’s announcement of delay affected their stock value tremendously. The 40,000 plus potential buyers interested in Kodak’s photo-centric cryptocurrency were left waiting. This announcement saw a dip of 13% in Kodak’s shares. When Kodak announced about KodakCoin ICO, their stock had gained more than 200% rise. The delay came amidst the couple of critical reports, most notably from The New York Times questioning the vetting practices of the nostalgic brand. The Times questioned their choice of business partners saying:“a paparazzi photo agency, a penny-stock promoter and a company offering what has been called a magic money-making machine.”
Failing to keep up with new brands, Kodak had filed for bankruptcy protection a few years ago. Hence, their decision to enter the cryptocurrency market gave a great boost to their share value. They must have been aware of the hard-line regulators have taken against cryptocurrency and ICOs in recent times. So they must have been aware of the difficulties they were going to face. SEC chairman Jay Clayton had earlier criticized public companies “that shifted their business models to capitalize on the perceived promise of distributed ledger technology.” And he might as well just have mentioned Kodak by name.
Future of KodakCoin
Meanwhile, for all its controversy, it is a much-anticipated project among photographers. As this project solves an industry-wide problem for them. By using this ledger, photographers can register their prints and then proceed to license them out. Ensuring the photographers to be paid for their work, and to catch anyone who violates the copyright. Kodak chief Jeff Clarke told the Times it was this disconnect in the photography industry that led him to blockchain technology in the first place.
He said to the Times: “This is not a dog food company that’s creating a currency. This is a real solution around digital rights that Kodak has been involved in for many years.”
The KodakCoin ICO is targeting investors across the United States, Canada, and the UK. It is going to be a tough task for Kodak to get success amidst all the controversies. And the controversies surrounding the company are not helping either.