Kodak is starting to raise cash in pre-ICO
The company, which has disappeared in recent years as a sequence of an industry transformation to digital imaging technology, is the latest firm to make a profitable, if not surprising, entry into the blockchain ecosystem.
As reported by CCN, Kodak launches KODAKCoin, a cryptocurrency created to help photographers better control the picture rights in their portfolio. Utilizing the cryptocurrency photographers and agents will be able to record their images on a distributed registry and then license them to KODAKOne, the company’s proprietary blockchain platform, which will signify developed through a licensing partnership with WENN Digital.
Although it has just announced this week, Kodak has already started to accept pre-initial coin-based investment (ICO). Global Blockchain Technologies Corp., a Canadian company in Vancouver, revealed that it has subscribed to all 8 million KODAKCoins that were made available in the first of two pre-ICO stages for a reported 2 million dollars. The entire ICO will start on January 31 and will be open to accredited investors.
Kodak launches Bitcoin Mining Rigs in Licensing
In addition to developing its cryptocurrency, Kodak obtained the license to create Kash-Miner, a mining equipment Kodak.
According to CNBC, a two-year lease on the machine will cost 3,400 USD, and the company expects to produce a 375 USD monthly income of Bitcoins or 9,000 USD over the contract.
There is, however, a catch. In addition to paying a 3,400 USD contract, users will have to return half of Kodak’s profits, reducing their estimated revenue from 9,000 USD to 4,500 USD.
Just wait, there are more! Kodak estimates suppose miners will earn consistent monthly incomes over the two-year lease, which ignores the fact that mine extraction has increased lately with a monthly rate of about 15%. As a result, some industry observers doubt that users will even be able to recover their 3,400 USD investment, let alone get a profit.
Kodak is selling a Bitcoin miner where you pay for a two year contract and “make a profit”. (*at current prices, Kodak gets half of all bitcoin you produce.) This is the dumbest shit I’ve ever seen at CES. pic.twitter.com/rbzECVEMn7
— Chris Hoffman (@chrisbhoffman) January 9, 2018
Kodak blockchain pivot was met with mixed reactions from analysts, while others hope it could mark the beginning of a new era for the plural company, while others characterize it as a clear cash cut after the company’s bankruptcy in 2013.
Investors are, however, bullish on the move. Since announcing the news earlier this week, Kodak has risen more than three times to 10.70 USD, from a previous 3.15 USD.