Kodak Kashminer Scheme Collapses
Revealed at the CES tech-trade show in 2018, Bitcoin mining devices with Kodak’s name were displayed. After being accused of running a grand scam, Kodak Kashminer’s company decided to end their operation and declare a failed plan after the SEC stepped in.
During the CES show earlier this year, mining rigs branded with Kodak’s name and logo were displayed at the company’s official stand. Spotlite, a company that licenses Kodak to use its name on their own products was the original creator of the mining rigs on display, unveiled at the show during Kodakcoin’s own reveal.
Halston Mikail, Spotlite’s head executive, stated that the original plan was to fill Kodak’s head operative officers in New York with as many of the mining rigs as possible. Kodak has a power plant of its own which offers incredibly cost-efficient power. Spotlite had planned to use this to their advantage and install mining rigs powered by the company’s power supply.
Kodak stated that Spotlite and its mining rigs were never granted permission or even licensed for the operation. None of the mining rigs were installed within its headquarters as well. Although the Spotlite does have the proper permission to use Kodak’s name on its LED products, any other devices like the mining rigs were never officially licensed.
A representative of Kodak stated that Kashminer is not an official Kodak product and it is not licensed by the company. Despite the products displayed at the show, Spotlite didn’t acquire the correct license for their mining products.
According to reports, Spotlite’s machines would be accessible to any customers after a fee was paid to use them and any Bitcoin profit from said machines would be split between the company and customer.
Despite the “plan”, many have claimed that Spotlite’s project was fraudulent and a scam due to unreliable and impossible promises of Bitcoin profit through its promotion, not to mention the consistently and increasing difficulty in successfully mining Bitcoin.
After the company claimed that a fee of almost $4000 would result in a monthly Bitcoin profit of almost $400 dollars, Saifedean Ammous, an established economist, stated that Spotlite users would have seen severe losses by investing due to the fact that the mining device had no way of ensuring the same profit with each passing month.
While many have stated that their own Bitcoin mining rigs are producing consistent and steady profit, these myths have been exposed as scams or lies. As more miners join the network and begin mining blocks for Bitcoin, every miner on the same network mines less from each block and profits even less. Starting in 2018, crypto-miners would generate more than $30 million a day and as of now, operations aren’t even breaching past $10 million.
According to reports, the SEC shut down Spotlite’s operation and as of now, the company will be mining Bitcoin privately as opposed to their earlier attempt at a rental service.