Is no secret that blockchain technologies have completely changed computing and finance as we know it. There are a myriad of applications and potential companies all looking to break into this new frontier of business. While many successful Ventures have come about, others leave much to be desired. It’s important to differentiate between genuine opportunities and companies that are crypto in name only.
Recently, Eastman Kodak of photo and image fame announced new partnereships and ventures into blockchain and crypto technologies. After the company reported KODAKOne and KodakCoin, the company’s stock price shot up more than 180% in a very short period of time, indicating a very healthy amount of optimism for the company and these new ventures.
Unfortunately there are many warning signs that indicate this is too good to be true. Sahm Adrangi, it’s on manager of over 150 million dollars in investments warns investors against the company, insisting that there is very little value added, and even more suspicious circumstances surrounding both Kodak as well as the new partner companies.
Sahm Adrangi was quick to point out the dubious partner companies that were involved in this process. While people recognize Kodak as a brand name that they trust and remember, it’s important to note these technologies are not being developed by them. WENN Digital Inc. is the outside developer of KodakOne, and has little history as a company or as a partner. In addition, Sahm Adrangi highlights the fact that KodakCoin is not an in-house Kodak developed technology but instead is created by AppCoin Innovations Inc, a recent company with no real history.
In addition, the board of directors at Kodak work right to give themselves restricted stock just one day before this was announced. This has very suspicious implications and can put the company at risk of SEC investigation regarding just how valid the claims and actions of the board have been.
Altogether, Sahm Adrangi it’s a clear picture of what seems to be going on. The are startup companies with potential technologies but no clout in the marketplace. There is no strategic value to this partnership, and Kodak is simply being used for its good name. Anyone investing in Eastman Kodak for because of KodakCoin may as well invest in any other unaffiliated high-risk startup in order to reap a greater potential benefit.