Crypto-Mania has gone mainstream, reports Bloomberg. Kodak, a household name to those over the age of 35, saw its shares soar over 270% over the last two trading days. What is the catalyst for the Kodak share price surge? The company announced that it will use blockchain technology and launch a “photo-centric cryptocurrency” called Kodakcoin. I wish I were kidding.
What are crypto-currency investors thinking? If you are wondering why the cryptocurrency bubble hasn’t yet popped, a quote from Warren Buffett may shed some light.
“In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending,” Buffett said. “Now when it happens, or how or anything else, I don’t know. But I know this: If I could buy a five year-put on every one of the cryptocurrencies, I’d be glad to do it, but I would never short a dime’s worth.”
Bloomberg has more.
Shares in Eastman Kodak Co. more than doubled after the former camera and film heavyweight said it would launch the Kodakcoin, “a photocentric cryptocurrency to empower photographers and agencies to take greater control in image rights management.”
The move comes as investors snap up virtually any asset related to digital coins or the blockchain technology that underpins them — no matter how tenuous the tie. Microcaps previously involved in sports bras, fruit juices and teas have made the move and been rewarded with spikes in their share prices.
Kodak, whose name was once synonymous with photographic film, emerged from bankruptcy in 2013 after selling off most of its patents to companies including Apple Inc. and Microsoft Corp. The Rochester, New York-based company now focuses on digital photography and printing, as well as licensing agreements.
Read more here.
Jeremy Jones, CFA
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