KnCMiner Responds to Customer Backlash Over 'Deceptive' Compensation Scheme

KnCMiner is defending against claims it was trying to trick customers with a new hosted bitcoin mining offer.

AccessTimeIconJun 24, 2014 at 5:30 p.m. UTC
Updated Sep 11, 2021 at 10:54 a.m. UTC

Cryptocurrency mining hardware company KnCMiner has defended itself against claims it had potentially attempted to mislead customers with its new hosted mining offer.

KnCMiner customers have recently taken to reddit to complain about the Stockholm-based company's use of small print accompanying its new offer, which removes customers' rights to benefit from the previous 2-for-1 Neptune offer.

"It was never our intention to deceive people," said Sam Cole, co-founder of KnCMiner.

Conflicting offers

On 28th April, KnCMiner offered every customer who had an outstanding order for the first two batches of Neptune bitcoin miners a free Neptune, from the third batch. This 2-for-1 offer meant each qualifying customer was promised a free piece of hardware worth $5,995.

The company's most recent blog post stated that customers' Neptune units would start shipping soon. However, an email was also sent out last week detailing a 'Plan B' offer enabling customers to take advantage of free hosted mining while they waited for their products to arrive.

This hash-while-you-wait offer was accompanied by slight changes to the company's Neptune Order Terms, namely the addition of the following clause:

"If the purchaser of the Products (referred to as the Customer) accepts KnCMiner’s offer and connects to KnCMiner’s Mining Services, the Customer automatically accepts that these General Terms shall apply for the provided Mining Services and that the Mining Services provided by KnCMiner shall constitute the Customer’s sole and only compensation due to the delay of the Products and shall supersede and extinguish all prior agreements relating to compensation for the delayed Products."

This essentially states that those who accept this Plan B surrender their right to receive the free Neptune they were offered earlier in the year.

"This is a breach of trust by KnCMiner and an attempt on their part to mislead customers. No customer in their right mind would accept giving up a free Neptune for a couple of days' hosting (a maximum of 1.5 months)," one KnCMiner customer, who wishes to remain anonymous, told CoinDesk.

Cole said his company has now taken steps to make the offer clearer to customers, and it is also allowing those who have not yet received a pay-out from hosted mining to switch back to the free Neptune offer.

"Really, it’s a lose-lose for us and either a little win or a big win for the customers," he claimed.

Shipping news

Cole revealed his company started shipping the Neptune units last week, with 300 units being sent yesterday and 250 today.

"With parts arriving all this week and being shipped out ASAP, we are still optimistic that people will receive all their miners this month. If we can’t get through the backlog, then each customer can choose hosted hashing until we have shipped their miners," he confirmed.

Cole went on to say KnCMiner would allow customers eligible for the free miner to choose between a Neptune and a Titan.

"We are giving people free money and way above what they paid for. We try our best but it’s going to be impossible to make everyone happy," he concluded.

Image via KnCMiner


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