The $20 million KodakCoin ICO will not happen after all, according to Kodak. This ICO was scheduled to debut on January 31st, but those plans have been halted for now. Instead, the iconic brand announced that they would need a few more weeks to sort things. This has left more than 40,000 potential buyers of the KodakCoin unsure of what to expect in the future. This has already had major implications for Kodak; the KODAK stock dropped by more than 13% after the announcement. This was after it had made gains of over 200% after the announcement was initially made.
What Has Caused the Delay?
The delay was most likely caused by various critical reports published in large news sources such as The New York Times. According to this report, there were many questions about the vetting practices used by the brand. The reports further questioned its choice of partners. For instance, the report noted that amongst its partners for the project was “a paparazzi photo agency, a penny-stock promoter and a company offering what has been called a “magic money-making machine”.
However, Kodak, which only a few years back filed for bankruptcy, must have known it would have a target on its back once it delved into the world of crypto coins. This is despite the fact that it registered the ICO as a security in light of the hard-line stance regulators have taken over ICOs and cryptocoins in recent months. On January 22nd, the Chairman of the SEC called out companies that were shifting their business model to capitalize on the rapid gains to be made from blockchain tech. In that speech, the only thing he did not do was call out Kodak by name.
Despite all the controversy, those in the photography sector are optimistic about the KodakCoin. They see it as being able to solve many of the problems that they currently experience. With the help of the distributed ledger, photographers can register their prints and license them out. This will make it easy for them to receive payment for their work and catch anyone trying to violate their copyright.
According to the Kodak CEO, these problems in the photography industry is what led him to think of blockchain technology; the issue of digital rights is an area in which they could help photographers.
Details of the ICO
The KodakCoin ICO will only be targeted at accredited investors in the US, UK, and Canada. Meanwhile, the lead advisor that Kodak chose for the ICO is going to raise eyebrows amongst investors. In the late nineties, Mr. Chell was banned from the Alberta Stock Exchange for five years and fined $25,000 for violating the rules.
What do you think about the delays in the KodakCoin ICO? Leave us your thoughts in the comments section below.