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

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
NFT Platforms Should Be Caught by EU Money-Laundering Overhaul, Lawmakers Say

Unhosted wallets and decentralized finance were left largely unscathed by two landmark crypto laws agreed to last week, but left-wing lawmakers may seek another go as they discuss dirty-money rules.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin se recupera y supera los $19K; Nomura advierte de una recesión en EE. UU. y Reino Unido

Nomura escribió acerca de una recesión en la eurozona, el Reino Unido y Asia Pacífico, lo que podría influir en los precios de las criptomonedas.

CoinDesk - Unknown
3
CoinDesk - Unknown
Argentinos se refugian en stablecoins durante el fin de semana tras dimisión del ministro de Economía

Los principales exchanges del país informaron que los usuarios compraron hasta tres veces más criptomonedas estables que durante un fin de semana normal, en medio una crisis económica en ciernes.

CoinDesk - Unknown
4
CoinDesk - Unknown
Polkadot Builder Parity Technologies Adds 3 Execs to Leadership Team

The new executives joining Parity are Eran Barak (COO), Peter Ruchatz (CMO) and Fahmi Syed (CFO)

CoinDesk - Unknown