Founded in 1978, Monster specializes in making accessories like headphones and speakers. They have relied mostly on retailers to distribute their products up till now.
According to a filing with the US SEC, Monster plans to run what may be one of the biggest ICOs of all time. They plan to do this by selling what they termed as “monster money tokens” to fun building the “Monster Money Network,” an e-commerce site to sell it’s own and potentially other companies products online, and customers can buy products using Ethereum tokens.
As part of their ICO plans, Monster plans to create 500 million tokens and sell up to 300 million in it’s offering. Monster indicated that offering will run for one year unless they sell out early, or the company decides to cancel the sale. Monster is also issuing 75 million shares of common stock so that if the network is unable to launch, they can exchange every four tokens for 1 share of stock instead.
The ICO appears to be Monster’s attempt to boost visibility and profitability, as they have been losing money for several years. They have had to downsize staff, cut their product line, cut marketing budgets and even close shut down a factory in Mexico. They admitted in their filing that:
“Our independent auditors have indicated … that there is substantial doubt about our ability to continue as a going concern.”
Instead of giving up and walking away, they have instead decided to gamble on the biggest ICO attempt and try to take on some of the most successful retail companies in history. As their filing 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.”