Eastman Kodak company announced that the much anticipated ICO of their cryptocurrency project KodakCoin, slated for January 31st, would be delayed by several weeks just one day before the ICO was set to take place. Kodak cited a need to “verify the status” of over 40,000 potential investors which have applied to take part in the ICO.
Kodak aims to launch KodakCoin as an ‘exempt offering,’ which provides the company with certain benefits when registering with the US Securities and Exchange Commission (SEC). However, in order to take advantage of this benefit, only “accredited investors” can participate in the ICO - individual accredited investors must have a net worth exceeding $1 million or a minimum annual income of $200,000, among other conditions.
The verification process of all 40,000 investors may take up to “several weeks” according to a statement published on the company’s website.
The delay of the KodakCoin ICO comes amid a higher level of scrutiny from the SEC at all initial coin offerings in the United States. The SEC recently shut down the ICO of Dallas-based AriseBank, which claimed to have raised over $600 million, due to allegations of fraud. Kodak may have come under pressure from shareholders and lawyers to make sure that their house was fully in order in light of the AriseBank ICO shut down.
In any case, investors did not take kindly to the announced delay of the KodakCoin ICO. Kodak’s share price plummeted from $9.50 at open on January 30th when the announcement was made to $6.63 as of February 2nd at 1:30PM EST, a drop of over 30%. The January 9th announcement of the launch of KodakCoin sent Kodak’s stock soaring from $3.10 to almost $11 the next day.