The world’s largest Bitcoin miner-manufacturer, Bitmain, has gotten into the bad books of some of their Chinese customers by manufacturing a substandard cryptocurrency mining machine.
During April 2018, at the Blockchain and Artificial Intelligence summit forum in Hangzhou, Bitmain’s Head of Miner Sales, Fan Xiaojun introduced the B3 Miner and claimed it could generate 780 H/s mining hash rate with about 360 watts of electricity. However, early buyers of the miner are now accusing Bitmain of a total rip off.
The early birds, who have purchased the overhyped Bitcoin mining equipment from Beijing-based Bitmain Technologies Ltd., are complaining that the machines have less computing power than what was advertised by the firm.
According to local news source China Money Network, users said they scampered to purchase the miners after Xiaojun advertised the product beyond proportions at a live marketing event.
The Bitmain representative told attendees present at the event that the B3 miners could generate at least RMB285 ($44.5) per day, with a power consumption rate of 360 watts which costs only RMB4 daily ($0.62).
The Bitcoin mining equipment was initially sold at the rate of RMB17,000 ($2,651), but Bitmain suddenly slashed the price to RMB11,000 ($1,715) just three days before delivering the mining equipment to buyers.
Some cryptocurrency investors were not so lucky, as they had earlier paid a whopping RMB20,000 ($3,119) for the same machine from other vendors.
Not Worth the Stress
After the initial excitement of buyers of the Antminer B3, they soon discovered that the machine was not exactly as functional as it was said to be.
A Chinese resident, Zhang claimed that three of his B3 miners could only manage a hash rate of between 500H/s to 600H/s, which is a far cry from the expected 780H/s.
He promptly notified the customer service department of Bitmain about his findings, and they asked him to reset the miner several times, yet the performance of the equipment remained below par.
Bitmain Refunds Unsatisfied Customers
The bitcoin big whale subsequently investigated the matter and had claimed that only less than one percent of the new B3 Bitcoin mining equipment had computing power issues. The company refunded some of the ‘victims’ RMB4000 ($624) for each machine.
However, Bitmain defended itself saying its marketing event did not precisely state the amount of money the advertised miners would generate for users. Therefore, it was not misleading in any way.
Bitmain has been accused of playing dirty games previously in a bid to remain the most significant player in the Bitcoin mining ecosystem.
In a Medium blog post by the lead developer of the Sia project, David Vorick, the coder claimed that Bitmain has a penchant for playing dirty. He accused the cryptocurrency giant of forbidding a vast number of chip makers from producing their chips in China.
In his words:
“…Our manufacturer reached out to us and said with little warning or reasonable explanation that they would be unable to manufacture for us. Just as we had been warned, our attempt to manufacture in China had fallen flat on its face.”
On May 12, 2018, BTCManager reported that Bitmain was doing brisk business at its two mega mining farms in the U.S. At current, all seems to be going well for the firm, as they are putting the finishing touches to their Antminer E3 that is scheduled for release before the end of 2018.
Whether the E3 will be any better than the B3, remains to be seen.