Pre-ICO and Branded Bitcoin Miners: Kodak Quickly Cashes in Quickly
Photography pioneer Kodak has not wasted any time cashing in on its pivot to blockchain.The company, which has languished in recent years as a result of an industry shift to digital imaging technology, is the latest firm to make a profitable — if unexpected — entry into the blockchain ecosystem.
As CCN reported, Kodak is launching KODAKCoin, a cryptocurrency designed to help photographers better control the image rights of their portfolio.
Using the cryptocurrency, photographers and agencies will be able to register their images on a distributed ledger and then license them on KODAKOne, the company’s upcoming proprietary blockchain platform, which will be developed through a licensing partnership with WENN Digital.
Though just announced this week, Kodak has already begun accepting pre-initial coin offering (ICO) investments.
Global Blockchain Technologies Corp.,a Canadian firm based out of Vancouver, revealed that it has subscribed for all 8 million KODAKCoins that were made available during the first of two pre-ICO stages, for a reported sum of $2 million.
The full ICO will commence on Jan.31 and will be open to accredited investors.
In addition to developing its own cryptocurrency, Kodak has licensed its name to create the KashMiner, a Kodak-branded mining rig.According to CNBC, a two-year lease on the machine will cost $3,400, and the company estimates that it will produce a monthly revenue of $375 worth of bitcoins, or $9,000 over the course of the lease.
There’s a catch, however.In addition to paying the $3,400 lease, users will be required to return half of the profits to Kodak, reducing their estimated revenue from $9,000 to $4,500.
But wait, there’s more! Kodak’s estimates assume that the miners will earn consistent monthly revenue over the course of the two-year lease, which ignores the fact that bitcoin’s mining has lately been increasing at a monthly rate of about 15 percent.
Consequently, some industry observers doubt that users will even be able to recoup the value of their $3,400 investment, much less turn a profit.Kodak’s blockchain pivot has been met with mixed reactions from analysts, with some hoping it could mark the start of a new era for the storied firm while others are characterizing it as a naked cash grab following the firm’s 2013 bankruptcy.Investors, however, are bullish on the move.Since announcing the news earlier this week, Kodak stock has more than tripled to $10.
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