A Bitcoin (BTC) miner rental operating under the Kodak brands has been terminated. This was said by Spotlite, which is the licensee of the scheme.
Spotlite, which is based in the U.S is one of the companies that offer the licenses to firms to use the Kodak brand name. Early this year, Spotlite showcased the KashMiner, which is branded under Kodak at the Kodak stand during the CES technology show that happened in Las Vegas.
The motivation behind the plan
Spotlite says that its original plan for the mining equipment was to have rented out. The company would rent out the equipment for around $3,400. According to the plan, the customer would in turn keep a percentage of the mined digital currency.
Halston Mikail, the Chief Executive of Spotlite had announced that they would install their units at Kodak’s headquarters. However, Kodak, while speaking to BBC, said that the scheme was never officially licensed.
The scheme was feared to be a scam
The scheme met a lot of criticism for misleading its customers about unrealistic profit returns. The scheme was accused of exaggerated phishing tactics to have people sign up. According to economist Saifedean Ammous, it is not possible that the Kodak miner can constantly make $375 every month. Additionally, the scheme was accused of taking into account the fact that Bitcoin mining had grown, evolved and became even more complicated.
Problems with securing regulatory approval
According to Mikail, the miner rental plan failed to pick up because the company failed to get the regulatory approval from the U.S Securities and Exchange Commission (SEC). Instead of offering the mining equipment for rent, the company will now privately deploy it in Iceland.
In January, Kodak announced that it would soon unveil its cryptocurrency. The coin would be launched on the KodakOne platform. According to Kodak, the platform will enable photographers to register and showcase their work, prevent unauthorized usage of their work as well as license photographs.
In January, Kodak delayed the launch of another digital currency. The company said it needed more time to evaluate the market and know the potential in investors. The launch was to be done just a day before the start of the initial coin offering.