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.
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:
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.
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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.