Sahm Adrangi on Why KODAKCoin is a Sham

On January 9th, 2018 Kodak announced its plans for a partnership to come up with a Cryptocurrency and blockchain platform that will enable photographers to gain Kodak coins. The platform will use an encrypted ledger and Artificial Intelligence image recognition software. A day before the announcement a group of board members rewarded themselves with stock units. The statement resulted in a 187% rise in stock prices. That is an increase of above $300 million. However, according to the founder and Chief Investment Officer (CIO) of Kerrisdale Capital, Sahm Adrangi, the move was purely aimed at benefiting the board members and not the shareholders. Just like all the other companies trying to profit from the Cryptocurrency craze, Kodak has joined the wagon. Read more about Sahm Adrangi at Benzinga.

The partnership called KODAKOne will be between Kodak and WENN Digital. The platform will be targeting new and existing images that are infringing image copyrights. Sahm Adrangi believes such a process is already in existence. Google and Microsoft are already doing it although the process may take longer, KODAKOne does not show how its operation will be better than the already existing ones. The challenge will also be convincing photographers to take KODAKCoin as a means of payment rather than actual money. Photographers who buy KODAKCoin will not be able to sell or transfer the coin for the first year. The number of token holders must also be at least 500 accredited token holders. The ICO that was set to be launched on 31st Jan 2018 has since been postponed to an unknown date. Visit Crunchbase to know more about Sahm Adrangi.

Sahm Adrangi’s report says that Kodak has been experiencing financial challenges and this was one of the desperate acts to cover it up. Between 2011 and 2013 Kodak disposed assets worth one billion dollars. Its primary source of revenue; enterprise ink systems and print systems dropped -10% in its third quarter in 2017. According to Sahm Adrangi, Kodak will be restructuring in the one to two years due to its debts. This is no surprise as the company went bankrupt six years ago.

Adrangi founded Kerrisdale Capital Management in 2009. He previously worked at Longacre Fund Management as an Investment Analyst. He also worked at Chanin Capital Partners at the bankruptcy restructuring group. If the stocks at Kodak are to go down, Sahm Adrangi Company Kerrisdale will benefit as it has a short position with the company.

Learn: https://www.hvst.com/user/sahm-adrangi