KodakCoin

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KODAKCoin
Development
Development statusInitial coin offering
Websitekodakcoin.com
Ledger
Hash functionEthereum

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.[1]

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.[2] 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."[3]

Blockchain platform[edit]

KODAKCoin will be available to accredited investors in the United States, United Kingdom, and some other countries.[4][5] 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.[6] KodakCoin will use the Ethereum blockchain platform.

KODAKCoin is the result of a partnership between Kodak and WENN Digital.[5] KodakCoin may be a rebranding of an abandoned initial coin offering (ICO) known as RYDE, a cryptocurrency developed by WENN Digital.[7] WENN Digital is a company formed by investments from Wenn Media Group and Ryde GmbH, a German company.[5]

KODAKOne[edit]

KODAKCoin is designed to work with Kodak's KODAKOne (or KODAKOne) platform, to facilitate image licensing for photographers.[8] The KODAKOne platform uses web crawlers to identify intellectual property licensed to the KODAKOne platform, with payments for licensed photographs made using KODAKCoin cryptocurrency.[9] On September 17, 2018, Kodak announced to work with Oak View Group to bridge the sports world with the upcoming KODAKOne platform.[10]

Conflicting statements about operational status of WENN Digital and ownership of subsidiaries[edit]

In the initial press release about the KodakOne project published by Eastman Kodak on January 9, 2018[11] 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)[12] builds a technological core of the KodakOne platform, was "meanwhile majority-owned by WENN Digital".[13]

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."[12]

Reception[edit]

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.[14][15][16][17] By the end of January, one third of Kodak's shares were trading short.[1]

BBC News "Tech Tent" declared KODAKCoin/KodakOne and the (unrelated) Kodak KashMiner "Worst Idea" at CES 2018.[18]

References[edit]

  1. ^ a b Lahman, Sean (January 31, 2018). "Kodak delays launch of cryptocurrency KodakCoin after questions arise over vetting process". The Coloradoan. Retrieved January 31, 2018.
  2. ^ https://bitsonline.com/kodak-finally-launch-token-sale-but-is-it-legal/
  3. ^ "KODAKOne FAQ". Retrieved September 19, 2018.
  4. ^ Reynolds, Matthew (January 10, 2018). "Well done, Kodak. Now everyone stop pivoting to the blockchain". Wired. Retrieved January 11, 2018.
  5. ^ a b c Ray, Tiernan (January 9, 2018). "Kodak CEO: Blockchain Significant, Though Not a Doubling in Stock Price". Barron's. Retrieved January 11, 2018.
  6. ^ Kodak Corporate Release (January 10, 2018). "KodakOne platform and KodakCoin Cryptocurrency". Kodak. Retrieved January 26, 2018.
  7. ^ Lee, Timothy (January 10, 2018). "We found a deleted page that reveals the paparazzi roots of Kodak Coin". Ars Technica. Retrieved January 11, 2018.
  8. ^ Yakowicz, Will (January 10, 2018). "KODAKCoin and 3 Other Ridiculous Cryptocurrencies People Are Going Nuts Over". Inc. Retrieved January 11, 2018.
  9. ^ Grigonis, Hillary (January 9, 2018). "KodakOne uses a blockchain and web crawlers to spot stolen images". Digital Trends. Retrieved January 26, 2018.
  10. ^ "KODAKCoin Inks Arena Partnership to Store NBA, NHL Photos - CoinDesk". CoinDesk. 2018-06-11. Retrieved 2018-09-19.
  11. ^ "KODAK and WENN Digital Partner to Launch Major Blockchain Initiative and Cryptocurrency". Retrieved 2 June 2018.
  12. ^ a b "White Paper" (PDF). kodakone.com. WENN Digital.
  13. ^ Max, Borowski. "Berliner Startup erlebt Hype und Häme". n-tv.de. Retrieved 2 June 2018.
  14. ^ Shen, Lucinda (January 10, 2018). "Bitcoin Mania Just Made Kodak $431 Million More Valuable". Fortune. Retrieved January 11, 2018.
  15. ^ Moyer, Liz (January 10, 2018). "Kodak shares have more than tripled since company announced its new cryptocurrency 'KodakCoin'". CNBC. Retrieved January 11, 2018.
  16. ^ Kawa, Luke (January 10, 2018). "Kodak's Coin Propels Trading Volume Past Biggest Index ETFs". Bloomberg News. Retrieved January 11, 2018.
  17. ^ Fiegerman, Seth (January 9, 2018). "Kodak to launch cryptocurrency, stock pops 125%". CNN. Retrieved January 11, 2018.
  18. ^ Cellan-Jones, Rory (12 January 2018). "Tech Tent: The CES 2018 Techie Awards". BBC News. Retrieved 18 July 2018.

External links[edit]