Kodak’s Cryptocurrency Mining Rig Device Vanishes As Concept Is Now Dead
Kodak Bitcoin Mining Is No More
The Kodak KashMiner made its first appearance at The International Consumer Electronics Show (CES) in January 2018. It was presented as a Kodak-backed bitcoin mining initiative, but the company that launched the venture has now confirmed its collapse.
The Kodak KashMiner mining rig went on display at the Las Vegas event in January, to immediate criticism from some quarters. Critics bluntly called it “a scam” and pointed to overblown marketing claims around potential profits. Furthermore, the company had an upfront fee structure which meant users would pay several thousand dollars upfront to rent a machine, only to split the profits thereafter.
Spotlite, the company that launched the mining rig, had a user plan that involved people paying $3,400 for renting one KashMiner. The company also planned on owning at least half of the bitcoin generated, with users getting a percentage. The company now says the whole project has failed and that it would not be pursuing its ambitions with Kodak anymore.
Kodak responded by insisting that it never sanctioned things officially, claiming that Spotlite wasn’t a licensed subsidiary. Not unusual in the echelon of household names, Kodak licenses its name out to many other companies seeking some credibility. Spotlite appears to have been an unfortunate choice.
Kodak is now somewhat disingenuously distancing itself from all the failed bluster. In cryptocurrency mining, complicated mathematical sums need to be solved by employing sufficiently powerful computing. It appears that the DIY Kodak offer was either premature or priced itself out of its target market.
At the launch, Spotlite CEO Halston Mikail had outlined plans of installing hundreds of KashMiner rigs at Kodak headquarters, Rochester, New York. This was to take advantage of an onsite power supply, as mining is a large and pricey consumer of available electricity. He also said that some 80 rigs were already up and running on the premises.
Kodak has denied that any mining rigs were ever installed while reiterating the fact that Spotlite was never officially licensed. Spotlite’s optimistic marketing material pitched consumers as being able to earn $375 a month for two years, by mining bitcoin. After, of course, they paid their $3,400 upfront fee. Critics protested that crypto mining was not only variable but also that costs were rising while profits were diminishing, squeezing many individual miners out at the time.
Kodak And Spotlite Mine No More
Prominent author and sceptic David Gerard called the Kodak Kashminer “cryptocurrency folly,” bemoaning the fact that the company hadn’t even made an attempt to finish its website. In defense of the company, Mikail said that the SEC had prohibited Spotlite from rolling on with its plans. According to BTC enthusiast and blogging economist Saifedean Ammous, anyone who had bought into the deal, would have lost in the end.
Spotlite’s Mikail is now saying that the company plans on running its mining operations in Iceland. This time, without Kodak's backing. There would be no renting out of rigs to consumers. In a final embarrassing slip, a Kodak spokesperson responded to the BBC by saying that although CES visitors saw the mining rigs “from our licensee, Spotlite,” the KashMiner was not a “Kodak brand licensed product.” Critics call the definitions arbitrary, and point to the fact that the failed Kodak-Spotlite venture has all the hallmarks of a pump and dump.