Change is constant, and so once moguls – Atari and Kodak, declined amidst competition and financial trouble. However, it seems they did not age well and the 80s stalwarts are eyeing recapitalisation through Initial Coin Offerings (ICOs)
The Pattern of 80s Giants
Kodak was the de-facto leader in photographic articles before the advent of digital media. Both Atari and Kodak were the hallmarks of pop culture in their primacy. However, failure to innovate led to their eventual descent. But, it is striking to see Kodak venturing into crypto mining and become an ICO entrant. Atari has avoided the limelight in this regard, but the similarities are not that far apart.
There is pattern seen here. Former giants announce ICO to revitalise, then their stocks surge by 50% and above. But eventually reality settles in, as there is no new product offerings, and the stock nosedives. Atari, the amenable creator of titles like Pac-Man is now pushing itself as a cryptocurrency juggernaut, with its Atari Token at the fore.
You Give In, You Lose
Companies need to innovate and adapt to the times ahead, lest face extinction. Thus, failing to innovate and on their eventual path to extinction, it is not a surprise that Atari and Kodak have ventured in cryptocurrency. However, this move shows a certain desperation to hold on to this ledge to arrest the cliff fall. And that invites certain degree of scepticism.
Until further developments, Atari deserves the benefit of the doubt. But, the very fact that they are using blockchain to pump their balance sheets than rather look into the disruptive potential of blockchain is concern enough. So, as a rule of thumb, stay wary of former giants coming for your digital currency. Don’t let nostalgia take over, and turn childhood icons into a bargain.