Headphone Maker Monster Files For $300 Million ICO
Beats headphone maker and cable manufacturer, Monster Products INC., is filed with the United States Securities and Exchange Commission (SEC) for an initial coin offering (ICO). Monster currently focuses on high-quality cables for electronics such as speakers and headphones. The company is supposedly looking to raise close to $300 million in ICO funding for Monster Money Tokens (MMNY). Monster is most known for its hand in creating Beats headphones which were later sold to Apple in a deal worth $3 billion. A $300 million initial coin offering would rank it as one of the largest ICOs of all time. Monster is planning on using the funds for its creation of an Ethereum based e-commerce platform.
The filing with the SEC had this to say:
We intend to utilize the blockchain technology to our marketing, accounting and audit, internal control and shipping management functions. We believe the blockchain innovation will bring disruptive advancement to our e-commerce and business operation systems.
So far the largest initial coin offering was FileCoin’s $257 million offering in 2017. With the creation of the Ethereum based e-commerce platform Monster hopes to eventually compete with Amazon. Monster has experienced big losses in the past and some see this shift into e-commerce has a last ditch effort for the company. Monster’s plan for the ICO is to offer nearly 300 million tokens in its original offering. They have also mentioned that they will also be issuing 75 million shares of common stock which will be used in case the network fails to launch as stated. These shares will be redeemable with MMNY tokens with 4 tokens equaling one share of the common stock.
The company has planned a three-stage process for its new business endeavor. The first stage will be to create a payment system using ERC-20 tokens and then they hope to lower transactions costs, which in the end Monster hopes will enable off-chain microtransactions.