KashMiner, the crypto mining tool developed by Spotlite USA for the Kodak company, will cease to be one of the photographic multinational’s cryptocurrencies 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, the Spotlite, had offered unattainable and misleading profits with the product.
KashMiner crypto mining project was promoted as the first Bitcoin (BTC) 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.
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 (BTC) 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.
Kodak stated they ceased their participation in the KashMiner crypto mining project
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 with such a crypto mining device.
“There is no way your magical Kodak crypto mining tool can earn the same $375 every month,” he said. David Gerard, a writer specializing in cryptocurrency, also considered the idea of Spotlite USA to be risky, calling it “crypto madness.”
In response to the cancellation of the project, a Kodak spokesman confirmed that the project had never been licensed by the multinational, and no KashMiner crypto mining device was installed at their headquarters.
Spotlite USA 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.
Now, Kodak want to sue Spotlite USA on the basis that they used the company’s name in the marketing of the KashMiner crypto mining device, without being allowed to do that.
