Press release issued by Kodak, says that their declared project KODAKOne is a service which will use a distributed ledger to help photographers place their work and provide them with license using that ledger. KODAKOne would also check on the web to find out any images used without the license and provide control for all their photos right on the future platform.
KODAKCoin is a cryptocurrency which will be used as a fuel of the KODAKOne service, and photographers will be paid with KODAKCoins.
WENN Digital’s role in KODAKCoin and KODAKOne
WENN is a just-created company formed by the acquisition of a photography company previously named WENN Media. According to the official webpage of Kodak Inc:
“WENN Digital changes the market status of its 30-year old affiliate WENN Media, which works with approximately 2,500 professional photographers.”
Nevertheless, before the partnership with Kodak WENN Digital has tried a crowdfunding option for an unknown project called RYDE. So far, the project has attracted a meagre 10 backers and raised only 875$ in total.
Here is Kodak comes in. As we mentioned above, this partnership provides the project with a feeling of credibility. This would drive the project beyond its minuscule $875 to thousands or millions of dollars.
Let’s think, why Kodak needs this actually?
It gives them the impact that they seriously need to promote its business, potentially raising its share price. This could, therefore, attribute to the names being KODAKOne and KODAKCoin, which basically binds the Kodak name to strengthen the brand presence. Moreover, with the growing hype within cryptocurrency industry, this provides Kodak with the perfect spotlight in the media. Even Jeff Clarke, the CEO of Kodak, confirms that words describing cryptocurrencies are “hot buzzwords”.
From these points, it is almost clear that Kodak’s purpose in such partnership is to grow the publicity that it wants, especially when its share prices have been on the downhill since its comeback in 2013. It is an excellent chance to raise its share prices, especially when other businesses experience huge jumps in their stock prices after they announced partnerships with cryptocurrencies.
Whether to invest in Kodak or not?
Despite the fact that cryptocurrencies are the new hype, there is no secret that there are huge risks in going into cryptocurrencies. Here we’ll mention just a few of the reasons why we believe investing in Kodak, or the KODAKCoin, is not the smartest decision:
1. Kodak’s Purpose
As we stated above, Kodak had been handling its name as a way of gaining revenues, especially in the case of licensing. Moreover, with the appearance of the cryptocurrency hype, it provides the company with a fantastic opportunity to an extra broadcast of its name, as well as generating profits from the huge increase in share prices. Same as many other companies, Kodak’s main goal is to generate revenues, and this is a chance that it decided to take. However, the factor that sets Kodak separated from other companies that approve cryptocurrency usage is that the KODAKCoin and KODAKOne do not directly influence its everyday business processes. Kodak is originally a firm that provides commercial and packaging printing, and these two platforms aren’t directly associated with its daily work. However, other firms adopting cryptocurrencies have a direct impact on its everyday operations. The good example is Ripple’s ecosystem adoption by banks and payment providers, which will decrease transaction costs and speed up cross-border transactions.Because this technology helps with their daily operations, it provides an incredibly attractive incentive to adopt cryptocurrencies. Nevertheless, the acceptance of KODAKOne and KODAKCoin doesn’t affect Kodak’s daily business probably that their main goal is only to generate revenue by the hype around cryptocurrencies and through licensing process. It means that Kodak will not contribute to the entire cryptocurrency ecosystem and will only gain profits stock price increases.
2. Unclear roadmap and lack of information
Currently, we have lack of information about the progress of KODAKCoin and KODAKOne. Updates about WENN Digital’s development team and how the service would be realized is also lacking because of the lack of the whitepaper. Perhaps more information would be released closer to the ICO date, and that might give us a better knowledge of what early adopters and investors are coming in.