Kodak has been facing a lot of problems recently and their new KodakOne and KodakCoin do not appear to be what will save the company. A negative report on the future of the company and these products was recently issued by Kerrisdale Capital Management and their founder Sahm Adrangi and it has gotten a lot of attention. Sahm Adrangi has predicted the failure of companies before with a shocking degree of accuracy. He has a keen eye for spotting sketchy business practices and reading between the lines. His predictions fro Kodak Eastman Company are no different.
Kodak recently announced that they are jumping on the cryptocurrency and blockchain bandwagon and many investors jumped on the opportunity causing their stocks to skyrocket. This effect was only temporary and Kodak Eastman quickly saw their stock prices drop to very close to what they were before they had gone public with their plans. The world of cryptocurrency and blockchain technology is very new and misunderstood by many people, Sahm Adrangi believes Kodak is using this to get the attention and money of investors knowing that the products will not go anywhere.
Sahm Adrangi sees many problems with Kodak’s new proposed digital currency and licensing system that range from legal to technical. One of the most obvious ones appears to be with KodakCoin and the fact that photographers just do not want it. The KodakOne system is integrated with KodakCoin and will supposedly compensate the artists whose work is being used unlicensed with their KodakCoin cryptocurrency and it’s not very likely that many people will be interested in this form of payment. Besides this problem, there appear to be many technological roadblocks that will come up while these products are being developed and Sahm Adrangi doesn’t think it is very likely that Kodak will be able to release a working version of these products as promised. One of the most concerning issues behind KodakCoin and KodakOne is the business practices that have been taking place both within Kodak and their partner company for the products Wenn Digital.