The bitcoin price has been under significant pressure in the past few months, yet managed to take good care of another crypto-mining scandal.
The other night, the technology company behind Kodak’s cryptocurrency mining scheme, has confirmed that the mining operation collapsed, after it labeled as “scam” by critics and blocked by the U.S. Security and Exchange Commission (SEC).
In January this year at the CES technology show in Las Vegas, a Kodak-branded bitcoin miner of which Kodak told the BBC was never officially licensed and that no devices had ever been installed was on display at Kodak’s official stand.
Spotlight planned to rent the computers, called Kodak KashMiners, to people for a fee of $3,400 for a 24-month period — and promised $375 a month as returns.
After making those return promises, people found that the bitcoin price would need to hit an average of $28,000 per coin over those two years — a far reality from the $6,700 of what bitcoin is trading at today.
Meanwhile, Kodak announced in January plans for an initial coin offering (ICO) on the KodakOne platform, to allow people in registering their work, licensing photographs, and searching the internet for unauthorized usage.
However, a day before it was set to start, Kodak delayed the launch of its cryptocurrency, citing that they need to evaluate the status of their potential investors.
The collapse of the Kodak-branded bitcoin mining scheme is what seems to be the latest blow for cryptocurrency miners after a number of high profile scandals this year, which include Facebook ads touting bitcoin mining rigs which illicit websites hijacking people’s computers for mining power
Furthermore, this development failed to dent the bitcoin price, which is currently at a seven-day high.