KashMiner, a Bitcoin mining computer which was on display on Kodak’s official stand at the CES technology show in Las Vegas in January, turned out to be a misleading product with unachievable advertised profits. The product, which was never officially licensed by Kodak, will not go ahead, according to the company behind the scheme.
BBC Uncovers Suspicious Bitcoin Mining Rig for Rent
Spotlite USA is a brand licensee for Kodak LED lighting products, which allows the company to put the famous brand on its own products.
In January 2018, the firm exhibited a rentable cryptocurrency mining computer. Its business plan was based on letting people pay an upfront fee to rent the computer. Customers would be able to pay off the $3,400 fee and make a profit out of the cryptocurrency mining activity with KashMiner.
A BBC report, however, found that the company was never officially licensed to use Kodak’s brand for the mining rig and that the estimated payout for cryptocurrency miners was unrealistic given that mining Bitcoin is increasingly difficult and costly. The promotional material promised earnings of $375 per month for two years, which would total $9,000 by the end of the contract and provide a profit of $5,600 for Bitcoin miners.
Saifedean Ammous, a Professor of Economics at the Lebanese American University and author of ‘The Bitcoin Standard: The Decentralized Alternative to Central Banking’ told the BBC that every single Bitcoin miner using KashMiner would lose money in such an investment.
“There is no way your magical Kodak miner will make the same $375 every month,” Ammous said.
The company’s CEO, Halston Mikail, said he plans to install hundreds of KashMiners at Kodak’s headquarters and that it had already installed 80 devices there. The claim was refuted by a spokesperson for Kodak, who told BBC that no devices had ever been installed.
“While you saw units at CES from our licensee Spotlite, the KashMiner is not a Kodak brand licensed product. Units were not installed at our headquarters.”
Questioned by the BBC in a phone call, Spotlite’s CEO claimed that the deal with Kodak didn’t go forward because of interference from the U.S. Securities and Exchange Commission (SEC) and that the company changed its business plan.
Instead of renting KashMiners to consumers, Spotlite USA will be running its mining operation in Iceland, where it has a number of devices installed. It is unclear that Spotlite USA was attempting to scam cryptocurrency miners, but evidence suggests gross miscalculation and deceit.