Performance marketing and information solutions provider Cogint Inc (NASDAQ: COGT) has disclosed the creation of a new division which will be dedicated to aiding the expansion of the company into blockchain technologies. Known as Red Violet Blockchain and Analytical Solutions the division will be responsible for offering cloud-based identity verification as well as know-your-customer solutions for the expansive and emerging blockchain sector.
Cogint’s announcement comes in the wake of Eastman Kodak Company (NYSE: KODK) shares more than doubling in price earlier this week after the photography company revealed that it had joined the virtual currency bandwagon. In a statement the Rochester, New York-based firm said that it would be launching a virtual currency known as ‘KODAKCoin’ which would be aimed at photographers.
Photography rights management
According to Eastman Kodak, the cryptocurrency would be part of its photography rights management platform known as KODAKOne. Eastman Kodak would team up with WENN Digital in the cryptocurrency effort. The platform would make use of blockchain technology, which is the backbone of digital currencies such as Bitcoin.
Just like was the case with Eastman Kodak when it announced it would be launching a virtual currency, other publicly listed firms which have made similar announcements have also seen a sharp rise in their stock prices raising concern in some quarters.
Virtual currency bandwagon
Some of the companies which have recently ventured into virtual currencies includes Riot Blockchain Inc (NASDAQ:RIOT) which was formerly in the biotechnology sector before turning its focus to bitcoins. The Long Island Iced Tea, a maker of soft drinks is another firm whose stock price has seen a sharp rise after turning to the blockchain technology and renaming itself Long Blockchain Corporation (NASDAQ:LBCC). A few days ago the company scrapped its plans to pursue public stock offering plan to fund the purchase of 1000 Antminer S9 Bitcoin rigs but the company still has plans to buy Bitcoin-mining hardware.
Prior to the announcement by Kodak, the share price had fallen drastically after it made a loss of $35 million in the three quarters that ended on September 30. Revenues had also fallen by 8.5% during that period.
In Wednesday’s trading session shares of Cogint Inc rose by 7.84% to close the day’s session at $5.50 per share.