KODAKCoin licensing revenue revealed: SEC
The coin will be traded via KODAKOne, an encrypted digital ledger of photographer rights ownership.
New financial information has been released pertaining to the licensing deal behind KODAKCoin, the purported digital currency for the image economy, which is currently being sold as part of an initial coin offering (ICO).
Tech giant Kodak and blockchain company WENN Digital signed a licensing partnership in January 2018 to launch an image rights management platform and new virtual currency to support digital photographers.
The coin will become the currency traded via KODAKOne, an encrypted digital ledger of photographer rights ownership. This will allow rights holders to register new and archived work that they license on the platform.
An annual report published by the US Securities and Exchange Commission (SEC) this week reveals that Kodak was paid $750,000 in cash by WENN Digital and received 50,000 shares of WENN stock valued at $1.25 million.
Additionally, the imaging technology company will be granted three million KODAKCoins upon completion of ICO. The value of the tokens “will be determined one year from their receipt” and are “not to exceed $3 million”.
Kodak will also be entitled to receive 3% of any coins issued by WENN Digital in excess of 100 million coins.
In an update on the company’s official website in early February, KODAKOne announced that the KODAKCoin ICO had been delayed and, given regulatory requirements, investor qualifications must be properly scrutinized.
“This phase will last for a few weeks, after which we intend to sell KODAKCoins to eligible investors,” it said.
tZERO will provide end to end advisory services, technology implementation and trading services for KODAKCoin. The suite of services offered by tZERO will include encryption of accounts, price quoting, clearing and reconciliation services, and anti-money laundering and know-your-customer verification.
KodakCoin’s ICO has been issued as complying with US Securities and Exchange Commission (SEC) guidelines. This event is open to accredited investors from the US, UK, Canada and other select countries. However, in the US accredited investors must have an individual income in excess of $200,000 or a net worth of $1 million.
This means that the average American won’t be able to invest in KodakCoin. Neither will most photographers, given that their median salary in the US is just $34,070, according to the Bureau of Labor Statistics.
Shares in the image technology company more than doubled (119%) following the announcement. Kodak filed for bankruptcy in January 2012 and switched its focus to the corporate digital imaging market.
In February, Atari, an early architect of arcade games and video game consoles, also decided to develop its own cryptocurrency, supported by a decentralized blockchain crypto-platform, for accessing digital entertainment.
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