Things That Make You Go Hmmmmm

Kodak. Kodakoin.

Utilizing blockchain technology, the KODAKOne platform will create an encrypted, digital ledger of rights ownership for photographers to register both new and archive work that they can then license within the platform. With KODAKCoin, participating photographers are invited to take part in a new economy for photography, receive payment for licensing their work immediately upon sale, and for both professional and amateur photographers, sell their work confidently on a secure blockchain platform. KODAKOne platform provides continual web crawling in order to monitor and protect the IP of the images registered in the KODAKOne system. Where unlicensed usage of images is detected, the KODAKOne platform can efficiently manage the post-licensing process in order to reward photographers.

KODK Chart

KODK data by YCharts

From Kodak’s last earnings call:
In the third quarter, revenues were $379 million with operational EBITDA of $15 million. On a constant-currency basis year-over-year, our revenues were down $35 million or 9%, and operational EBITDA decreased $8 million or 36%

It was funny when Long Island Ice Tea did it. Kodak was one of the most innovative companies in the world for almost half a century. Kodak built Rochester, NY. Scientists came from everywhere just to work there. They missed digital photography and declared Chapter 11. I remember as a kid going to Disney and seeing signs posted that said it was a “Kodak picture spot”.

It’s not that I am pooh-poohing Kodak and it’s embracement of blockchain. I think it’s pretty cool. Could it save the company? Or is it just a sign of more froth?  Is this a Kodak moment?

Virtually all the exchanges in the world ought to be looking at blockchain no? Their memberships are just like tokens.  If Kodak jumps 44%, exchanges and other companies have to be looking at the free money.  It’s non-dilutive capital from what I can tell.  I will say that stocks like Kodak don’t suddenly lurch higher on news like that-unless there is some sort of mania driving it.

 

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  • Andrew Page

    I am going to talk about this tomorrow night at the Chicago Ethereum meetup, which is being hosted at Matter Health in Merchandise Mart. The larger context for this talk will be the Howey test and SEC regs for crypto projects. I want to specifically mention Kodak Coin, Cryptokitties, and maybe 1 or 2 other projects.

    Kodak has decided to do an exempt ICO using a 506(c) private placement. Buyers of the token (which also will be used as payment for licensing agreements) must be accredited investors.

    This presents a problem for them. Let’s say an accredited investor buys Kodak Coin, and pays a non-accredited investor pro photographer the Kodak Coin as part of a photo licensing agreement. Kodak Coins are still securities at this point! So it will be really hard for the photographer to sell them for cash (theoretically, the photographer could sell them, but only to an accredited investor at that point).

    Matt Levine at Bloomberg has hilarious analysis on this as of this morning: https://www.bloomberg.com/view/articles/2018-01-10/good-luck-spending-your-kodakcoins