KashMiner, the Bitcoin mining tool developed by Spotlite USA for the Kodak company, will cease to be one of the photographic multinational’s cryptomoney projects as it will not gain the approval of the United States Securities and Exchange Commission (SEC) for its legal operation.
The news has been reported by the BBC, which says the denial of KashMiner’s license is due to allegations of fraud led by experts in the field, who claimed that the startup that developed the initiative – Spotlite – had offered unattainable and misleading profits with the product.
KashMiner was promoted as the first Bitcoin mining initiative by Kodak developed by Spotlite. The tool was presented last January at the Kodak booth at the CES Show Technology event in Las Vegas. It was also alleged that after its licensure the tool would be leased to third parties to enable them to mine through a Kodak power plant located at its headquarters in Rochester, New York.
The initial rental of the machine was estimated at $3,400, ensuring that the tool could generate a profit of $375 per month over two years from mining on the Bitcoin network. Similarly, Halston Mikail, CEO of Spotlite USA, had assured that 80 machines had already been installed in the Kodak building and were fully operational.
However, everything stopped with the SEC refusals. Critics of the event called KashMiner a “scam”, because due to the current difficulty of Bitcoin’s blockchain it was impossible to calculate such high profits from mining activities.
Saifedean Ammous, an economist, told the BBC that anyone who had bet on this tool would have lost the investment because it is impossible to earn the money. “There is no way your magical Kodak miner can earn the same $375 every month,” he said. David Gerard, a writer specializing in kryptonite, also considered the idea of Spotlite USA to be risky, calling it “kryptonite madness.
In response to the cancellation of the project, a Kodak spokesman confirmed that the project had never been licensed by the multinational, nor were the miners installed at their headquarters, nor was the KashMiner website completed:
While you saw units of our licensed Spotlite at CES, KashMiner is not a licensed product of the Kodak brand. The units were not installed at our headquarters.
Mikail reported that the company abandoned plans to rent equipment to third parties through Kodak and decided to set up its own private mining farm in Iceland.
Kodak has already been involved in the world of digital assets and blockchain platforms before. The company recently launched an Initial Offer of Currency (ICO) for the development of a network for the protection of licensed images, which plans to raise $50 million and has already raised the company’s stock by more than 100%.
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