The branded Kodak bitcoin miner turned out to be a scam

The branded Kodak bitcoin miner turned out to be a scam

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The KashMiner bitcoin computer, exhibited at the Kodak booth during the CES technology show in Las Vegas, was in fact a product designed to mislead potential consumers and with a potentially unattainable potential return.

Spotlite USA is licensed by Kodak’s lighting division, which allows it to use the famous brand in its products. In January 2018 the company introduced its computer for cryptocurrency mining  and announced that it intends to lease it. According to its business plan, potential users had to pay a commission before getting the device. It was expected that after depositing $3,400, the customer will receive a device that will allow him to easily cover expenses and receive revenue from bitcoin mining.

However, as it was possible to establish the BBC channel, the company did not have an official Kodak license to use the brand in the production of mining equipment and initially overstated the indicators of the potential yield of its device, refusing to take into account the growing complexity and costs of mining bitcoin. The advertising materials reported that KashMiner brings $375 a month, which, subject to a 2-year contract, would allow the client to receive $5,600 of profit after paying a commission. Experts from the cryptocurrency industry call this offer a scam.

Professor of Economics at the University of Lebanes American and author of the book “The Bitcoin Standard: The Decentralized Alternative to Central Banking” Saifedian Ammoniously told BBC that the device Spotlite USA will be unprofitable for its users. “There is no magic that will make your Kodak-Miner bring you $ 375 every month,” he said.

CEO Spotlite USA Halston Mikael previously reported that he plans to install hundreds of miners at the headquarters of Kodak. According to him, he already managed to place 80 miners there, but the Kodak spokesman denied this information: “Although you could see the devices of our Spotlite licensee on CES, KashMiner is not a product released under the Kodak license. Such devices were not installed in our headquarters”.

In a conversation with BBC CEO Spotlite USA said that the deal with Kodak failed due to the intervention of the Securities and Exchange Commission (SEC), after which the company was forced to change its plans. Instead of renting KashMiner for rent, Spotlite USA decided to independently mine the cryptocurrency in Iceland.

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