Kodak soars on the crypto-currency plans

Stock photo firm Eastman Kodak has climbed nearly 120 per cent after it revealed its intention to mint its own crypto-currency, the KodakCoin.

The american firm has said that it was to team up with London-based Wenn Media Group for the implementation of an initial coin offering (ICO).

It is part of a blockchain-based initiative to help photographers control their image rights.

Kodak also detailed plans to install lines of Bitcoin mining rigs at its headquarters in Rochester, New York.

The details of this second regime – that is the hallmark of the Kodak KashMiner – have been presented at the ces tech show in Las Vegas.

The customers will pay in advance for rent mining capacity.

Kodak is the latest in a series of companies to see its value jump, after he revealed plans for the blockchain-related activity.

“It is a phenomenon that we saw during the dot com days in the late 1990s, where traditional businesses would like to mention a kind of internet strategy and the share price would jump up,” said Garrick Hileman from the University of Cambridge.

“When you see the share price moving like this, it does not seem to be troubling, it is hard to say if there is a bubble, but it’s certainly the sign of a frothy investment market.”Creation of coin

Kodak has been notoriously slow to join the digital revolution, and his reluctance to leave behind its film heritage cost of the market society.

Getty Images

Since its collapse in 2012, Kodak has licensed its brand to a variety of manufacturers, with the mark appearing on the batteries, printers, drones, tablet computers and digital cameras.

The KashMiner operation will be executed by Spotlite, a licensee who had already teamed up with Kodak for the use of its brand on the market of LED lights.

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The mining operation is to perform process intensive tasks to solve difficult mathematical problems, in order to verify the crypto-currency transactions.

Any Bitcoins that are generated by Kodak KashMiner will be shared between the customer and the company.

Each mining rig boxes that include computer processors and fans to keep them cool – about the same amount of electricity as running a hair dryer around the clock.

But the regime will be able to take advantage of Kodak’s on-site energy production of the plant, which had the reserve capacity from the Kodak to the big time.

Getty Images

The company says it can supply power to each rig of four cents per kilowatt-hour, which is significantly less expensive than the execution of a platform at home.

The Bitcoin current value, an initial investment of $4,000(£2,954) for 24 months of mining would earn a profit of $500 per month, Spotlite of Halston Mikail told the BBC.

But anyone who wishes to join the bet will have to wait, because the capacity is already sold out, Mr. Mikail added.

“At this time we have 80 minors, and we expect 300 to arrive shortly. There is a big pile of the application,” he said.

Bitcoin is notoriously volatile, and some analysts fear that its value could crash, resulting in a loss for those who had pre-paid for the extraction capacity.

But Mr. Mikail said the platforms could be put to work on other tasks if Bitcoin went down.

“Bitcoin might be a bubble. But the blockchain industry is not a bubble,” he said.

“It’s a solid platform built on mathematics, and it will survive.”Kodak currency

Kodak is another initiative, the KodakCoin, is being created as part of an effort to build a world big book of the picture of property rights that photographers can add their work.

Associated KodakOne software will be used for the analysis of the web and find the photos that were used without permission.

The company said it would then “manage the licensing process,” so that the photographer can be paid, in KodakCoin.

“Kodak has always sought to democratize photography and make licensing fair for the artists,” said Kodak ceo Jeff Clarke.

“These technologies give to the photography community an innovative and easy-to-do.”

The company’s shares traded at more than 130% above their opening price after the announcement before the end of the day 119.4% more.

But an expert had doubts.

“The storage of information in a blockchain is not to protect your copyright, not more than copyright already does,” said David Gerard, author of the Attack of the 50ft Blockchain.

“Note that they are marketing: they state a problem, then say the blockchain can solve. But there is no mechanism by which the blockchain could do that.

“It doesn’t do anything other than sign up to Shutterstock or Getty Images would not.”

Similarly, some people think that Kodak will not be the last household name to associate with ICO.

“I think that we will see more brands releasing their own tokens and coins in support of various products and services,” said Mr. Hileman.

“This is something that many large companies are thinking very hard about.”

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