If you’re looking to invest in the KodakCoin initial coin offering, consider holding your horses, as the KodakCoin launch has been delayed.
On Wednesday, Eastman Kodak (NYSE:KODK) announced that it will delay the much-anticipated ICO — which is scheduled to launch today — by “several weeks”. Not only did this shock potential investors, it also didn’t bode well for shareholders of the company, as the stock fell by over 13% during today’s trading session.
According to Kodak’s official statement, the company made this decision so that it could enter an “accredited investor” verification phase because of the high degree of interest generated by the ICO. The company claims that more than 40,000 investors have signed up to participate in the offering.
However, a more likely and plausible reason for the ICO delay could be related to an article published by The New York Times yesterday that raised questions regarding Kodak’s partners and the true nature of this ICO.
The article described the partners involved in the ICO as “a paparazzi photo agency, a penny-stock promoter and a company offering what has been called a ‘magic money making machine.'”
It also mentions how critics have characterized the company’s new venture as a “desperate money grab” by jumping on the blockchain hype, which has drawn comparisons to Long Island Iced Tea Corp., whose value tripled after it rebranded itself as Long Blockchain Corp. (NASDAQ:LBCC).
These concerns raised by the Times article could have some legs, as evidenced by movements in Kodak’s stock over the past few weeks. According to an article published by Bloomberg, about one-third of Kodak shares traded in the past month were in short position. In comparison, only 8% of the shares were in short position before the initial KodakCoin announcement was made.
“It feels like a publicly traded company issuing a token to raise its stock price from the grave,” said Kyle Samani, a partner at the cryptocurrency trading firm Multicoin Capital.
At the moment, nobody could say for sure what this delay truly means. The new KodakCoin launch in “several weeks” will tell whether this ICO will really be a “Kodak moment” for the company.
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