Monster Products, Inc to revive its declining fortune by launching a $300 MILLION ICO.
Monster founded in 1978, manufactures accessories like headphone and Bluetooth speakers. Monster had relied on retailers to market its product. Monster is making efforts to redesign, it’s business model which is consistent with its aspirations
Monster is all set to launch one of the biggest ICO of all time by selling’’monster money token’’ to create ‘’monster money network’’.This will be the e-commerce portal to push its product and possibly the products of other companies.
Monster Money Network will be used to purchase its product using ethereum tokens if it can raise the capital it intends to.
This development is in line with the general trend of launching ICO to raise money using blockchain. Hitherto, Tech companies with venture backing have launched ico’s but this is first long-standing consumer product to do so.
As an agenda Monster will create 500 million tokens and sell as many as 300 million tokens in its offering. The offering is slated to run for a year. Change in the plan can only happen if it sells out the rolled out tokens before time or it decides to cancel the sale early. Concomitantly the company is also rolling out 75 million shares of common stock in case the network fails to launch so that it can exchange every four tokens for one share.
It has to be considered that Token doesn’t come with equity or voting rights. Contrarily it is established as a payment method for e-commerce, which ensures faster settlement and lower fees than existing model.
Nevertheless, Monster is also filing to take advantage of the “emerging growth company” designation under the Jobs Act, which provides for certain lighter disclosure requirements and broader investor solicitation rights
With respect to network launch, Monster’s filing discloses the surprising amount of details. For instance, the filing enumerates that the Monster Money Network will be relied upon for payment processing, market analysis, audit, payroll services and logistic operation. Thereupon it expects to recruit other e-commerce platforms onto the network
There will be a three-stage process for the product. First, it will be a payment system next it will reduce or abrogate transaction cost by enabling micro-transactions off-chain. The final stage will be the transition to its own blockchain
As the filling explains
“In the future, Monster intends to leverage its global connections and brand visibility along with blockchain technology to bring more and more other e-commerce platforms onto Monster Money Network and expand the user base of MMNY Tokens. We hope to set up the blockchain standard for e-commerce platforms.”
The company has witnessed the change from its inception. It started as a Monster cable because Noel Lee, its founder came to a conclusion that different kind of cables produces different levels of audio fidelity. The discovery led to expansion into related products
“We primarily design, engineer, market and sell headphones, cables, docks, speakers, power products and mobile accessories,” according to its filing, which argues that it has several advantages over its competitors in the industry, including brand recognition, a network of ambassadors and culture of innovation.
Although half the money is invested for technical development, nearly one third is deployed to develop a relationship with partners who promote Moster products.
At the end of the day, it doesn’t seem like the new tokens will ever be the best way to procure Monster’s earphones and links, and it appears to be certain that the ICO is in no little section a methodology to give a multimillion-dollar lift to the product offering’s perceivability.
Up until this point, there hasn’t been a case of a non-blockchain organization moving into decentralized programming from a place of quality, and Monster shows up (at first look) to be the same.
As its documenting states:
“We consider Amazon, eBay and Alibaba as examples of our main competitors with respect to the new Monster Money Network and our existing e-commerce platform.”