After the not-so-smooth transition to digital images, Kodak had filed for bankruptcy protection in 2012. Now its new ray of hope is a blockchain-based initiative. As per the reports revolving, Kodak enters crypto, launches KODAKCoin.
The company which was once an industrial icon with a goal to make photography “as convenient as the pencil”, saw its decline over the years and in 2013, after recovering from bankruptcy got rid of most of its debts and some patents as well. It refocused on digital printing, packaging and tried to live off its old glory days with a legacy film business. However, none of those schemes worked and sales kept going downhill till it dipped below red.
With hopes of tipping the scales over Kodak Chief Executive Jeffrey Clarke announced the plan to mint its own crypto-currency, the KodakCoin along with Initial Coin Offering which will help digital photographers sell their work, get paid and license their images.
It also plans on providing bitcoin mining rigs which customers can simply “rent”.
The new plan has indeed helped shoot the stock’s trajectory skyward, just like some other companies such as bitcoin which soared some 14-fold, before Kodak. However, this field is getting crowded by the day. ICO Alert currently lists about 80 similar offerings in the market and only more to be launched in the coming months.
Though the hype did almost triple Kodak’s stock, it’s unlikely to work any magic on the company’s sales or profit. The company has been trying to sell assets to recover its still existing huge amount of debt. Now, the real question is whether the new initiatives will really reverse Kodak’s decades-long decline.