Hedge Fund Manager: Kodak Will One Day Be Worth As Much As Kodakcoin

It was not a compliment.
By Mariuszjbie (Own work) [GFDL or CC BY-SA 4.0-3.0-2.5-2.0-1.0], via Wikimedia Commons

By Mariuszjbie (Own work) [GFDL or CC BY-SA 4.0-3.0-2.5-2.0-1.0], via Wikimedia Commons

It’s been—until today—a rough few weeks for bitcoin. It’s been even rougher for bitcoin-like things that are not bitcoins.

EOS, one of the largest initial coin offerings, or ICOs, was down as much as 67% since Jan. 13, when it hit a record high of $18.37. TRON, which started trading in September, was down 92% since Jan. 22. OmiseGo was down 71% since Jan. 9. ICON was down 75% since Jan. 30. Even an “old” ICO like Augur, down 69% since Jan. 12, hasn’t been spared.

Most of the larger, more established altcoins fell sharply as well. Ether, the currency used on the Ethereum network, was down 60% since Jan. 13. Ripple was down 84% since Jan. 4. Bitcoin Cash was down 82% since Dec. 20. Litecoin was down 71% since Dec. 19.

Unmentioned above is Kodakcoin, presumably because it doesn’t exist yet. (I mean, it exists in the same way that any other altcoin exists, in that it is an idea with physical manifestation, but it is at the moment an untradeable intangible.) Still, the same above does not paint a rosy picture of what the post-Kodakcoin Kodak will look like.

Sahm Andrangi knows what the picture of a car crash looks like, and he’s pretty sure that after the final altcoin smash-up, Kodak will eventually look a lot like Kodakcoin (and, according to Goldman Sachs, most other cryptos), which is to say, in its way, non-existent.

“No photographer would rather be paid in KodakCoins over real money,” according to a report Wednesday from Kerrisdale, a hedge fund known for moving stocks with its outspoken calls. “It’s a last-ditch stock promotion gambit for a company hurtling towards bankruptcy….”

“Rather than dreaming of a ‘new economy’ for photographers, shareholders should be concerned about an eventual wipe-out,” Kerrisdale said. “Eventually, possibly as soon as the next time Kodak reports earnings, a share price levitating on the hopes of blockchain technology will give way to the gravity of dying, old-world fundamentals.”

Kodak Shares Are Headed to Zero, Short Selling Hedge Fund Says [Bloomberg]
Bitcoin’s Bear Market Leaves Its Mark on Coin Offerings [WSJ]
Bitcoin surges by more than $2,000 in just over a day [CNBC]
Most cryptocurrencies will crash to zero, Goldman Sachs says [CNBC]