With energy prices rising, switch to a cheaper plan
Compare Prices Now

Troubled Kodak ICO confirms 21 May launch date

Posted: 11 May 2018 1:22 pm
shutterstock broken camera 450x250

The disastrous and largely successful-to-date Kodak ICO has found a launch date.

Kodak's bankruptcy in 2013 has become a cautionary tale, warning businesses against sitting on the sidelines or actively pushing back against disruptive technology in their industry, rather than going with the flow. In the case of Kodak, its undoing was the obviously-poor-in-hindsight decision to double down on camera film in response to digital cameras sweeping the market.

Since then its name has been prostituted to any project that wants to buy an air of respectability by tapping into the Kodak name. For example, the Kodak "KashMiner" bitcoin mining machine, sold under a lease agreement which lets people pay $3,400 upfront – about the cost of a typical bitcoin ASIC miner – for the privilege of giving up 50% of the bitcoin it mines. These kinds of shady rent-a-miner schemes often meet unfortunate ends.

This kind of licensing agreement, designed to flay as much value as possible out of Kodak's tattered hide for the purposes of satisfying its creditors, might inevitably see it licensed towards the shoddy end of the product spectrum. After all, reputable and well-backed projects don't need to buy legitimacy.

In this case, the Kodak name is being licensed to a cryptocurrency being created by a paparazzi outlet named Wenn Digital. It previously tried to launch almost the exact same product without the Kodak brand name, but flopped hard enough to call the whole thing off.

KODAKCoin itself is designed to be part of an image rights management ecosystem. This isn't a bad idea in itself and blockchain technology, which allows for the creation and identification of unique one-and-only digital pieces, is probably in a good position to solve it. Although there's no particular reason to limit the system to photographs alone.

Even setting aside the question of whether KODAKCoin is actually a viable idea, the project itself has been riddled with criticism. The KODAKCoin whitepaper has been described as a kind of vague buzzword stew, and one of the project's leading consultants, Cameron Chell, has previously been involved in ventures shady enough to wrap up with arrests and fraud charges. Another key figure in Wenn Digital, Volker Brendel, has been barred from serving as an officer of a public company in Germany.

It's easy to see why they decided to license to the Kodak name, and it has been undeniably effective at drumming up interest. Kodak stock prices rose sharply on news of the coin, and people have actually heard of the project now. Unlike the previous Wenn Digital ICO for the same product, which raised less than $1,000 from less than 10 "investors" before being cancelled, the new Kodak ICO has reportedly raised about $10 million in pre-sales already and is targeting $40 million more.

It has apparently been so successful that the company had to push back the date of the ICO to deal with the surge of interest, and ensure that they were only selling to accredited investors.

The announcement was made on 1 February, saying there would be a delay of "several weeks" for the team to get their ducks in a row. The delay was long enough for one relatively prominent Chinese exchange to bizarrely announce that it would be selling Kodak ICO tokens.

Now, over three months later, a launch date of 21 May has been set, Fortune reports. The launch is expected to take the form of a Simple Agreement for Future Tokens (SAFT), which lets buyers purchase future tokens which are then only delivered once there's a functional network for them.

KodakCOIN co-founder Cameron Chell points out that his arrangement lets them raise money first, and then work out what the coin will actually do later.

"SAFT is not necessarily locked into exactly what the token has to be," said KodakOne co-founder Cameron Chell to Fortune. "We can figure it out over the course of the next six to nine months."

Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, BTC, NANO

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Get into cryptocurrency

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site