A well-known hedge fund does not believe in Kodak's latest initiative related to the blockchain. This is reported by Coindesk.
In his study, the Kerrisdale Capital hedge fund claims that Kodak's blockchain project is not real, and even calls it "last-ditch stock promotion gambit for a company hurtling towards bankruptcy." The Kerrisdale fund holds a short position on Kodak shares and is also known for the fact that its applications can affect quotes.
On January 9, the company Kodak announced that it will hold ICO to finance its crypto currency project, which will help photographers solve their problems with the rights to their works, after which the company's shares rose by 37%.
However, the Kerrisdale Foundation, based on its research, argues that Kodak will not be able to compete with other blockchain start-ups, as "in the next 12-18 months the company can expect a default and debt restructuring."
In this regard, the hedge fund notes that Kodak lacks the technological capacity and funding to implement its technology KodakCoin, and therefore - to make transactions and store images with the help of a blockbuster.
In addition, the Kerrisdale study evaluates individual Kodak plans to enter the mining market - the hedge fund also doubts that this will help Kodak to repel the investment.
Kodak's cryptocurrency ploy hits all the major buzzwords – blockchain, smart contracts, distributed ledger, ICO, etc. But look through the PR spin, examine the true merits of using blockchain for the proposed service, and it's obvious the project is poorly thought out and will never work as promoted.
Kerrisdale Foundation Report
As of press time, Kodak has not yet responded with comments.