The stock price opened at $3.10 a share Tuesday and rose as high as $7.47 after the announcement was made at the Consumer Electronics Show in Las Vegas.
Eastman Kodak is joining the cryptocraze.
In partnership with Wenn Digital, Kodak on Tuesday announced the launch of the KodakOne image rights management platform and KodakCoin, a photo-centric cryptocurrency created to "empower photographers and agencies to take greater control in image rights management".
For many investors, the surest sign that digital currencies are more than just the latest craze is news that longstanding companies are expressing interest in the space.
KodakOne not only allows photographers to license their work and get paid more quickly, it will search the internet for unauthorized use of images, the company said. While Kodak may have been forgotten by some people due to the "smartphone era", the company is now entering what most technology companies can not get enough of, i.e. Blockchain and ICOs.
The biggest advantage the platform will provide for users is the immediate payment and shared revenues ensured, once their work becomes licensed.
While acknowledging the timeliness of the move, the company said in a release that the move has been planned for a while. He's skeptical whether this cryptocurrency initiative represents a sustainable business.
Kodak CEO Jeff Clarke says that Blockchain and cryptocurrency are hot buzzwords but these buzzwords may be key for photographers who have struggled to control their work.
The rights management service will continuously crawl the web to keep track of how images registered in its system are being used online. The Kodak ecosystem is driven by the KodakCoin, which veteran and rookie photographers receive in exchange for licensing agreements on the blockchain. "These technologies give the photography community an innovative and easy way to do just that", Clarke said.
The initial KODAKCoin offering will open on January 31 and will be open to accredited investors from the U.S., UK, Canada, and other countries. Where unlicensed usage of images is detected, the KODAKOneplatform can efficiently manage the post-licensing process in order to reward photographers.
The company also announced a website, KODAKCoin.com which they say will have more details in the coming days.