Kodak’s stock has more than tripled this week, since the once-giant of photography announced a pivot into blockchain technology and cryptocurrency.
Part of their move is a Kodak-branded mining rig called the KashMiner, which was showcased at this year’s CES. It’s created and run by a company called Spotlite, and has licensed the Kodak name.
Here’s how it works: Users pay $3,400 to rent the mining machine for two years.
Kodak claims the KashMiner will produce about $375 worth of new bitcoins every month, which would lead to estimated revenues roughly $9,000 over those two years.
But here’s the catch: You have to give back half your profits.
And others warn the $375 figure is exaggerated, as those bitcoin returns will diminish every month:
Kodak has now become a Bitcoin mining scam. Look closely, they are flat-out lying about the returns of their miners because they neglect to mention the small detail that the difficulty rises and the output drops!
There is no way your magical Kodak miner will make the same $375 every month, unless Bitcoin mining difficulty stays the same. It is currently increasing at around 15% a month, so mining output should drop around 15% a month, too. Good luck to everyone who bought this deal!
The company is also launching its own cryptocurrency, “KodakCoin.”