The KodakCoin ICO has been delayed due to “large interest”
Kodak and WENN’s foray into the digital currency market has hit a snag as the photography giant announced a delay in the KodakCoin ICO, citing a large demand for investment and the need to screen prospective investors to make sure they’re viable.
The ICO, which has been regarded as some as dubious, will now be delayed by ‘several weeks’ as the company takes time to run checks and vet potential investors, ensuring that have a net worth that exceeds $1 million and an annual income of at least $200,000.
“Given the large interest in the KODAKCoin ICO and the steps we need to take to verify the ‘accredited investor’ status of each interested investor, we expect this process to take several weeks,” the statement said. “Engaging with a new platform, it is critical photographers know their work and their income is handled securely and with trust, which is exactly what we did with KODAKCoin,” said CEO Jeff Clarke.
The project sees Kodak and WENN Digital combine to provide a new platform for photographers to own, share and sell copyrights to content, meaning a more assured way for artists to ensure their work isn’t being stolen. Shares in Kodak took a spike after the announcement but the move has since been criticised as a blind foray into the crypto market; capitalising on a trend without any concrete foundations.
The New York Time’s Kevin Roose is one of those detractors. He called the move “dubious”, stating, “In several calls with KodakCoin leaders, I couldn’t get straight answers to these questions. And KodakCoin’s white paper, a technical document that details the plans for the currency, is a 40-page mishmash of marketing buzzwords and vague diagrams”.
This is a sentiment that appears to be shared by those betting on Kodak’s fortunes, with the majority betting on a short. As a result, Kodak’s share price has now dipped following the initial spike following the announcement. Only time will tell if their adoption of crypto will actually provide a secure digital platform for photographers to protect work, or whether poor planning will cast further doubt over the link between digital currencies and technologies for potential investors.