Cryptocurrency Launch Delay of Kodak Causes Share Price to Tumble

By Eastman Kodak via Wikimedia Commons

The shares in Kodak, the camera company, have dropped after it delayed the launch of the company’s own version of bitcoin.

KodakCoin had been anticipated to be available to purchase today. However, many wannabe investors were left to be frustrated following the revelation of Kodak that only accredited investors who are earning more than $200,000 would be able to purchase the said tokens.

Also in an update, the company said that the verification of possible investors – more than 40,000 – would take around several weeks.

A spokesperson for Wenn Digital, the company with which Kodak is collaborating with on KodakCoin, stated that the ICO is “proceeding without delay” and that “we are in the accredited investor validation phase.”

The company which is already over 100 years old surprised many by announcing that it would be entering into the world of cryptocurrencies at the beginning of the year. It said that it would be working with Wenn Digital in order to produce a blockchain platform for the digital rights management of photographs. KodakCoin will serve as a “new economy for photography” the company said. The said move sent shares soaring by more than 200 percent.

On Wednesday, the shares dropped by more than 15 percent when the markets in New York opened, after the additional details of the ICO were disclosed. The stock of the company is now off its recent highs of between $10 and $11, and at pixel time, it was trading at $7.75. That is still up by more than 150 percent on the price of the stock the day prior to the initial announcement.

Bloomberg revealed that the stock has also been targeted by short sellers. A third of its stock is currently traded as short positions. One of the creators of KodakCoin meanwhile said that the share price increase had been a “terrible distraction.”