Kodak-Branded Mining Scheme Exposed As A Scam
SEC steps in to block mining operation that did not materialize
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Plans for the cryptocurrency mining scheme behind Kodak has collapsed due to achievable profits as advertising has misled its customers. Follow the article on BBC, Kodak told BCC that the scheme was never offically licensed and they did not go ahead with it.
The Kodak KashMiner ASICs miner was put on display at the CES Techonology Show in Las Vegas early January, with plans to rent the machine out to people. Spotlite USA, the company behind the scheme, offered a $3,400 24-month contract to rent the KashMiner, promising to generate $375 of earnings a month. This was an unrealistic plan as Bitcoin prices took a hit and could not generate that amount of revenue.
"There is no way your magical Kodak miner will make the same $375 every month," wrote economist Saifedean Ammous, who pointed out that anybody taking the gamble would have made a loss on their investment.
Source: BBC
Image source: pixabay - Pexels
Earlier this year, Kodak has made plans to launch its ICO for KODAKCoin together with WENN Digital. Photographers could use Kodak's forthcoming blockchain to register works, with "KODAKCoin" functioning as a medium of exchange on the platform. Users can receive payment in the cryptocurrency as well as pay for rights, according to the company. Source: coindesk - Stan Higgins.
The announcement led to a sharp increase in Kodak shares from $3.10 to $10.50 on 10th Jan 2018. The price of Kodak shares have currently stabilized to $3.75. Moving forward with the ICO and licensing deal, it was expected for Kodak to earn $5 million:
Going forward, Kodak will receive 3 percent of any tokens issued by WENN if the total number of coins is greater than 100 million, according to the report. This [initial] phase will last for a few weeks, after which we intend to sell KODAKcoins to eligible investors.
Source: coindesk - Nikhilesh De
In its private pre-sale of KODAKCoin, $10 million was raised by its investors as of today. Cam Chell, chairman and co-founder of KODAKOne, told Reuters that the KodakCoin ICO will be registered with SEC. using an instrument called the Simple Agreement for Future Tokens (SAFT). Under a SAFT offering, the token is issued when the blockchain platform is launched which, according to Chell, is expected to be later this year. SAFT offerings are limited to accredited investors. Source: cointelegraph - Ana Alexandre.
-tysler
Image source: pixabay - Free-Photos
However, there may be more to love about blockchain generation than simply its decentralization. due to the fact miners are running 24 hours a day and 7 days every week to affirm transactions, they may be settled much faster than through conventional banking, which sticks to ordinary groups hours, closes for the weekends, and frequently holds price range for a few days. plus, without an intermediary, transaction fees can definitely go down with blockchain.
Moreover, blockchain offers user control and transparency. as an alternative than letting a 3rd-celebration control, the destiny of a cryptocurrencies' blockchain, individuals of a cryptocurrencies' community are who call the photographs with reference to destiny improvement.