The Eastman Kodak Company announced on Jan. 30 the postponement of their cryptocurrency launch, reportedly in consideration of their need to evaluate the status of their potential investors. The announcement came a mere day shy of the Initial Coin Offering (ICO).
According to Kodak’s official website, they are aiming run an ICO with “exempt offering” in the form of security tokens. Essentially, what this strategy means is that they would not have to register with the US Securities and Exchange Commission (SEC), and ICO participation will only be limited to “accredited investors”.
The rules of SEC state that individual accredited investors must have a net worth exceeding $1 million, or a $200,000 annual income at the minimum, on top of other conditions. Kodak, for their part, explains that they will need “several weeks” in order for them to verify the status of the more than 40,000 applicants claiming the status of “accredited investors for the purpose of the ICO. The company also notes that for those potential investors coming from outside the United States, their applications will be considered in accordance with the laws of their own local jurisdictions.
Markewatch reported a sharp increase in Kodak’s stock (KODK) following the press release from Jan. 9, which announced the supposed launch of the project. As soon as the postponement was announced by the end of the month, however, their stock dropped to a massive 18 percent, and continues this downward trend.