During this year’s CES tech summit, the Kodak booth had on display a product called ‘KashMiner’ — a Bitcoin mining device which claimed to deliver hefty profits on a monthly basis. However, it has now come to light that the project was unable to deliver on its lofty promises and was essentially a scam.
Suspicious Activities Galore
Earlier in January, Spotlite USA, a company that claimed to possess a license for using Kodak ‘s famous brand logo, exhibited a first of its kind “bitcoin mining computer” that could be rented by anyone and used for daily mining purposes.
The company’s core business scheme was to let people pay an upfront rental fee of $3,400 and hire the device for their personal mining activities. The company promised quick returns, claiming that not only would users be able to recover their rental costs within months but would also make handsome profits beyond that.
Recently, the BBC released a report in relation to the aforementioned matter and found that Spotlite USA had never really obtained an official license to use Kodak’s brand image for their mining rig. Not only that, investigators also found that the returns that were being promised were unrealistic and “mathematically unachievable”– since mining Bitcoin has become increasingly more difficult and costly within the past 12 months.
What was being offered by the company?
As per the deal, Spotlite claimed to deliver promised earnings of $375 per month for two years, which effectively meant that by the end of the contract, customers could rake in an overall profit of nearly $5,600.
Not only that, the company’s CEO, Halston Mikail, also said that he planned on installing “hundreds of KashMiners at Kodak’s headquarters”, a claim which has since been refuted by a spokesperson from Kodak.
After the entire episode was brought to light, Spotlite’s CEO immediately changed his tune and is now claiming that the deal with Kodak fell through because of the SEC’s involvement in the matter.
Whatever may be the case, issues like these always portray the crypto sector in a bad light and give mainstream media outlets yet more fuel to brand this entire technological space as a ‘bubble or scam’.
Image courtesy of Shutterstock.com
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