|Development status||Initial coin offering|
KODAKCoin is a photographer-oriented blockchain cryptocurrency used for payments for licensing photographs. The initial coin offering (ICO) was scheduled for January 31, 2018, but was delayed for several weeks so that accredited investors could be validated.
In May 2018, the company announced that it would offer Simple Agreement for Future Tokens (SAFT), and that investors would not receive tokens until the KodakONE product is complete. According to KODAK, KODAKCoins will be issue by July 1, 2019 unless, in the opinion of its legal counsel, "KODAKCoin tokens will not be deemed to be “securities” within the meaning of Section 2(a)(1) of the Securities Act."
KODAKCoin will be available to accredited investors in the United States, United Kingdom, and some other countries. Working in conjunction with the KODAKOne digital rights management platform, it will serve as the currency for an encrypted, ledger of intellectual property rights ownership. KodakCoin will use the Ethereum blockchain platform.
KODAKCoin is the result of a partnership between Kodak and WENN Digital. KodakCoin may be a rebranding of an abandoned initial coin offering (ICO) known as RYDE, a cryptocurrency developed by WENN Digital. WENN Digital is a company formed by investments from Wenn Media Group and Ryde GmbH, a German company.
KODAKCoin is designed to work with Kodak's KODAKOne (or KODAKOne) platform, to facilitate image licensing for photographers. The KODAKOne platform uses web crawlers to identify intellectual property licensed to the KODAKOne platform, with payments for licensed photographs made using KODAKCoin cryptocurrency. On September 17, 2018, Kodak announced to work with Oak View Group to bridge the sports world with the upcoming KODAKOne platform.
Conflicting statements about operational status of WENN Digital and ownership of subsidiaries
In the initial press release about the KodakOne project published by Eastman Kodak on January 9, 2018 WENN Digital is described as having a "live operational copyright infringement management system" that "is delivering revenues to photographers worldwide today" and leveraging "the market position of its 30-year old subsidiary WENN Media, which works with approximately 2,500 professional photographers". German media report on March 21, after a conversation with WENN Digital CEO Jan Denecke that his Berlin-based startup RYDE GmbH, which according to the White Paper released by WENN Digital (dated April 24, 2018) builds a technological core of the KodakOne platform, was "meanwhile majority-owned by WENN Digital".
In the last ICO White Paper version before the beginning of the ICO on 21 May 2018 it is stated that WENN Media and RYDE GmbH are not owned by WENN Digital but are only to be purchased under certain conditions. It is also stated that WENN Digital does not have any operational business: "WENN Digital is a newly formed Delaware corporation which has no operating history and will not have any operations unless and until the consummation of the business combination transactions described in the Offering Memorandum between it, WENN Media and Ryde. The closing of each of these acquisitions is conditioned upon, among other things, WENN Digital’s receipt of $10 million in proceeds from the offerings on or before July 31, 2018. There can be no assurance that the closing conditions will be met and that the business combination with WENN Media and Ryde will be consummated."
Following the January 9 announcement of the new platform at the 2018 CES in Las Vegas, Kodak's stock price tripled in two days, as its market valuation increased to US$565 million, an increase of more than 300 percent. By the end of January, one third of Kodak's shares were trading short.
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