One hedge fund supervisor is never buying Kodak's blockchain pivot.
In a analysis record released Wednesday, Kerrisdale Capital alleges Kodak's blockchain effort is never exact, going as far as to name it "a last-ditch inventory merchandising gambit for a company hurtling towards chapter." Kerrisdale holds a short position on Kodak's inventory, and is common for giving mighty opinions on public stocks that may move costs.
As reported by means of CoinDesk, Kodak introduced an preliminary coin providing (ICO) on Jan. 9 with a view to apply blockchain technology to clear up copyright issues confronted via photographers. The information was adopted by a 37 percent start in the company's stock, and a period of heightened performance.
however, in Wednesday's document, Kerrisdale Capital referred to its research leads it to trust that Kodak may not be capable of compete with other blockchains startups, because "it's staring on the opportunity of default and a debt restructuring in the subsequent 12-18 months."
As such, the hedge fund argues that Kodak lacks the technological potential and the funding to realize its claimed KodakCoin technology and thus transact and save images over a blockchain.
Addressing its separate plans to enter the mining market as well, the firm furthered its argument that the return of investment on Kodak remains questionable.
The record reads:
"Kodak's cryptocurrency ploy hits all of the main buzzwords – blockchain, smart contracts, dispensed ledger, ICO, and so forth. but appear during the PR spin, investigate the true deserves of using blockchain for the proposed provider, and it be obvious the venture is poorly concept out and may never work as promoted."
As of press time, Kodak has not yet replied with comments.
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