A Bitcoin miner project operating under the Kodak brand has collapsed. The company behind the scheme has said that it has been stopped from proceeding any further by the SEC.
UNREALISTIC PROMISES AND INCORRECT MATH
In January, a Bitcoin mining computer called the Kodak KashMiner was unveiled at the CES technology show held in Las Vegas. Even though it was displayed at the official Kodak stand, the computer was actually a product from a company called Spotlite USA — one of several entities that operate under license to sell products under the Kodak’s brand.
The company planned to rent out the Kodak KashMiner machines to customers for an initial fee of $3,400 USD. It had also shared its plans to set up hundreds of devices at the Kodak headquarters in New York in order to take advantage of an on-site power plant’s cheaper electricity. Investors would receive part of the bitcoin mined by the machine they rented from the company, and there were promises of a $9,000 return ($375 per month) over a two year period.
The Kodak miner was, however, put under scrutiny and dismissed outright as a scam by people like The Bitcoin Standard author Saifedean Ammous. Now, it appears that the criticism was justified as promises of guaranteed returns against the ever-increasing Bitcoin mining difficulty were indeed too good to be true.
Read more: https://bitcoinist.com/bitcoin-miner-scam-from-kodak-licensee-shut-down-by-sec/
