Hollywood Looking for Bitcoin Film Financing
Hollywood feature film may soon be financed with cryptocurrencies.
Christopher Woodrow, who has helped produce or finance movies for the past decade, says the distributed-ledger technology known as blockchain is about to disrupt the film industry and he wants to be a part of it.
The producer the Oscar-winning film “Birdman,” as well as “Black Mass” and “Hacksaw Ridge,” plans to launch his own blockchain-based token called MovieCoin in Q-1 of Y 2018.
Funds raised in the sale, or ICO (initial coin offering), will go toward financing a portfolio of movies. Investors will benefit as the tokens, which can be traded in the secondary market, would appreciate based on the success of the films, Mr. Woodrow said.
The target is to sell $100-M tokens that will be compliant with Securities and Exchange Commission (SEC) regulations. Just like ICOs have given retail investors access to cutting-edge technology projects that used to be reserved to venture capitalists, digital tokens can also democratize film financing.
Mr. Woodrow is a former Managing Director at Prospect Point Capital, which invested in venture capital deals in the entertainment industry.
He also worked at Citigroup Inc., Oppenheimer & Co. and CIBC World Markets in investment banking and portfolio management.
This isn’t the first attempt at bringing blockchain to show business.
Flixxo wants to create a decentralized video sharing network like to Youtube funded through its token.
Music Pop star Bjork said she will accept Bitcoin and other cryptocurrencies as payment for her most recent album, and along with any purchase, she will give away AudioCoins, a cryptocurrency to be used on a decentralized music streaming platform that rewards fans and artists.
Startups have raised over $3-B in ICOs, more than VC (venture capital) funding, issuing volatile tokens that can just as easily increase their value many times over or crash fast.
The SEC has warned investors of fraud.
Bitcoin, the 1st and biggest cryptocurrency, has soared more than 700% this year and is currently trading at 7,644.9151,
Despite the value of the tokens’ underlying assets will protect them against a wild fluctuations in prices and a potential crash.
MovieCoin will be issued on Top of Bankex, a platform for asset-based tokens.
“We can’t ignore that some cryptocurrencies are being issued in a speculative manner, which could create a bubble,” Mr. Woodrow said. “The alliance of Bankex with MovieCoin will mitigate that risk by underpinning our cryptocurrency with tangible assets.”
You may have to wait for the movie to find out.
Have a terrific weekend.