Well, if my research is accurate...being on indegogo despite promises of being on Kickstarter, controller's a third party Wii controller (one that has poor reviews, on top of it), no prototype...I think I missed something, and I think Glowsquid knows more, but I think that gives an idea of the failure they've had with it.
It was a bad idea to start with. The people behind it didn't think that maybe, it wasn't the cartridges themselves that made the games classics, but the games IN the carts?
Basically, after it was rebranded as the Coleco Chameleon, two things happened that pushed it from "stupid idea" to "outright scam":
1: After it was rebranded as the Coleco Chameleon, Mike Kennedy promised a prototype would be exhibited at the New York toy fair. The system had an exhibit, but some things were strange:
1: The led light isn't turned on when the console play games
2: Despite promising to emulate many system and play original games, only a small number of SNES games are demoed
3: The system uses the huge and inneficient properiatary SNES AV plug despite there being literally no reason to use it.
Some AtariAge users did some sleuthing and discovedred the horrible truth: They didn't have a working prototype, they just put a SNES mini board in a Jaguar case.
2: After THAT happened, Mike Kennedy delayed the kickstarter on the day it happened and posted a pic of a transparent chameleon with a "pcb" inside to prove he has a working prototype.