The Securities and Exchange Commission has put a halt to the Kodak-branded bitcoin-mining computer, KashMiner, which was announced at CES in January.
The machines were apparently shown on the Eastman Kodak stand at the CES show, alongside Kodak’s ‘own’ photo-centric cryptocurrency, KODAKCoin, and blockchain-powered image rights platform, KODAKOne. Both of these were joint developments with WENN Digital, which would operate the KODAKOne platform and issue the KODAKCoin cryptocurrency. Unlike KashMiner, the WENN Digital initiative appears to have some viability as the https://kodakone.com/ website is a finished product, although access is only available to subscribers.
According to a BBC report (https://www.bbc.co.uk/news/technology-44845291), Spotlite, the company behind the KashMiner plan, has said it will not ‘move forward with leasing the machines’. This follows a series of economists’ reports stating the claimed profits from the initiative were virtually impossible to achieve, in part because of the wild fluctuations in bitcoin pricing. Critics have also labelled it a ‘scam’.
Spotlite planned to lease the Kodak KashMiner machines (and similar equipment based on other cryptocurrencies) at US$3,400 for two years. The lessee would receive half the currency the machine generates while, Spotlite would take the rest. Spotlite had planned to store the machines at Kodak’s headquarters in Rochester, New York, to take advantage of low-cost electricity there. However, a spokesperson for Kodak told the BBC the machines were never installed in its offices. It also claims the devices were never licensed, although it didn’t disclose whether it took legal action over the use of Kodak branding.
Spotlite CEO Halston Mikail said the company would instead run its mining operation privately with equipment installed in Iceland, instead of renting capacity to consumers. However, to date, the scheme has not gone beyond its unfinished website.