Tech 17 July 2018Gerald Fenech
Kodak-branded crypto mining scheme collapses
There has been yet another casualty in the cryptocurrency space where cryptocurrency mining is concerned, BBC reported. In January, a crypto mining computer that called itself Kodak Kashminer turned up on display on Kodak’s official stand at the much vaunted CES technology show in Las Vegas, Nevada.
Critics were quick to jump in, describing the scheme as a scam and deriding its mining potential. The main point of criticism was that the promised profits were misleading, given that they’re impossible to achieve. Spotlite USA, the company behind the crypto miner, has now confirmed that the scheme will not be going ahead. Furthermore, Kodak also confirmed when asked byBBC that the scheme was never licensed to operate under its brand name.
To mine cryptocurrencies like BTC, computers are tasked with solving complicated mathematical problems in order to verify cryptocurrency transactions. Successful miners are rewarded with the crypto for their efforts. There has been a plethora of companies mushrooming after the BTC price exploded in late 2017, but since the price of the coin has dropped by over 70% from its all-time highs, these companies have disappeared.
Under Spotlite’s plans, people will pay an up-front fee of $3,400 (£2,500) to rent a KashMiner. In return, the renters get to keep a portion of any BTC that the crypto miner generated. The company estimates that customers will earn $375 a month for two years.
To take advantage of cheap power rates offered by an on-site power plant in New York, Spotlite CEO Halston Mikail said they would install “hundreds of the devices” at the Kodak HQ in Rochester. So far, 80 KashMiners were already in operation, according to Mikail.
Kodak, however, confirmed to BBC that no devices had been installed, noting that the venture was never officially licensed. Spotlite has been licensing the Kodak brand to put on its products, such as the Kodak LED Lighting.
Critics noted that the promised profits did not take into account that mining cryptocurrencies like BTC has become increasingly difficult due to rising costs and the decline in the currency’s price by over 70% from its all-time highs.
Kodak, meanwhile,has plans of launching its own cryptocurrency on the KodakOne platform, a blockchain-based system that protects the copyright of images or photographs registered on the platform.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
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