Headphone manufacturer Monster wants to launch biggest ICO of all time

So far, it seemed that ICOs as a source of capital were primarily interesting for young start-ups. To revive its business, a long-established company, Monster Products Inc., is now starting an ICO – the largest of all time.

Founded in 1978, the US company Monster Cable Products, Inc. has made a name for itself with its headphone series „Beats by Dr. Dre“. In 2008, it collaborated with the US rapper Dr. Dre on this project. Apple took over the product series in 2014. After that, the manufacturer of audio equipment didn’t do well. Already in the first quarter of 2018 it had to record losses of 19.6 million US dollars. To avoid bankruptcy, it has already laid off employees, cut its marketing budget and closed a factory in Mexico.

These measures were apparently not sufficient, so that now the step into the crypto world should help.

Largest Bitcoin secret of all time

Monster’s business concept has so far been to entrust retailers with the distribution of its Bitcoin secret products. In recent years, however, the company has been threatened with insolvency. An ICO is now to serve as the last Bitcoin secret.

The concept behind the ICO is interesting: In its application to the SEC, the company announces its intention to sell „Monster Money Tokens“ based on Ethereum. This will build the „Monster Money Network“, a new e-commerce website for the online sale of its products (and possibly those of other companies). Monster will create 500 million tokens and sell 300 million through the ICO. It is planned to run for one year. The tokens will then be used as a payment method to purchase the products through the planned Monster Money Network.

Great cryptosoft ambitions

The cryptosoft ambitions are high, as the company wants to compete with its most successful competitors: „We see Amazon, Ebay and Alibaba as examples of our main competitors in relation to the new cryptosoft Monster Money Network and our existing e-commerce platform.

In its SEC filing, Monster has provided an astonishing amount of detail on the proposed project. The Monster Money Network will be used for payment processing, market analysis, accounting, payroll, inventory management and shipping of products sold online. The company also hopes to be able to recruit other e-commerce platforms from the network. This is to be introduced in three stages. The first step is simply a payment system with an ERC-20 token. In the next phase, transaction costs will be reduced or eliminated by activating off-chain micro-transactions. In the final phase, monsters will move to their own blockchain. The company has high expectations:

„In the future, Monster wants to use its global connections and brand visibility along with blockchain technology to bring more and more other e-commerce platforms to Monster Money Network and expand the user base of MMNY tokens. We hope to set the blockchain standard for e-commerce platforms.“

Doubtful Opportunities
Should the ICO fail, an additional 75 million ordinary shares will be issued. If the ICO fails, four purchased tokens can then be exchanged for one share. There is therefore no „money-back guarantee“. This „emergency solution“ at least gives the buyers of the tokens a small security. The success of the ICO seems doubtful. In the SEC application, the company at least honestly admits:

„Our independent auditors have […] indicated that there is considerable doubt about our ability to continue as a company.“