Monster Inc. is a major manufacturer for music cables, along with audio devices and accessories. Though it has been around since 1979 as a creation of Noel Lee, an engineer, it has experienced great losses both presently and in its history. However, they are attempting to revive their revenue by opening up an ICO that will hopefully reach about $300 million during the sale.
Recently, most people known Monster Inc. as the creator of the Beats headphones, but this product hasn’t been enough to keep them afloat. With the profits that they make from the ICO, they will be developing their own cryptocurrency network that will be called Monster Money Network, and it will be based on the Ethereum infrastructure.
Too much of the company’s funds seem to have come from the trademarks and lawsuits they’ve developed over the word “monster.” In a report published by the Wall Street Journal, Monster Inc. has gone after Disney for their movie Monsters Inc., a family business for their Monster Mini Golf park, and a seller of children’s t-shirts with Junk Food Monster on the logo. However, this company also pushed the 49ers to adopt their name, changing the popular Candlestick Park stadium to Monster Park.
When the company applied to the SEC for their ICO, it is clear that the company is not thriving financially. In 2017, they demonstrate their loss of over $26 million, which is substantial for any large or small business. However, it has already reached a loss of $19.6 million in the first three months of 2018, which shows that the brand is not surviving with the current consumer base right now.
In their plea to the SEC for their ICO, Monster Inc. elucidated on their reasoning.
“We plan to integrate the Ethereum blockchain technology to our E-commerce website to create the new ecosystem, namely Monster Money Network where consumers may use either MMNY Tokens or fiat currencies to purchase Monster products and services. As wwe develop Monster Money Network and our backend systems, we intend to utilize the blockchain technology to our marketing, accounting and audit, internal control and shipping functions. We believe the blockchain innovation will bring disruptive advancement to our E-commerce and business operation systems.”
The Three Stages of Developing the Monster Money Network
According to the reports from Monster Inc., their platform and network will be created within three specific stages that should help them grow to make up the losses they’ve experienced.
- The platform is established as a payment system.
- An off-chain platform is created that supports micro-transactions, but without massive transaction costs that typically come with them.
- The blockchain network becomes integrated as part of the company’s main operations, supporting departments like marketing, payroll, and supply chain management
Even though the undertaking of this project at a whole could be challenging and somewhat overambitious, the founder believes that this could catapult them into the future of finance and profit. In a statement within the filing documents from Monster, the brand said,
“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”
The Intial Coin Offering for MMNY Tokens
Monster Inc. is breaking the mold in a few ways, especially with their ICO. Rather than lasting a few weeks or a few months, the platform will be offering the tokens over the course of the year, which may create a lack of urgency for consumers. Also, an ICO of this length could require the brand to offer securities under the current laws regarding cryptocurrency in the United States.
During the year, consumers will have the opportunity to purchase up to 300 million tokens, though the total available tokens amount to 500 million. Each token will be fixed at a $1 exchange rate. Any tokens that are unsold or reserved will be maintained within the company’s digital wallet to be used as they see fit. If the ICO is successful in reaching the goals of Monster Inc., they will be the largest token sale that consumers have seen up until the end of 2017. However, there are a few platforms that have exceeded $1 billion in 2018.
Available Stocks from Monster Inc.
It’s obvious that Monster Inc. doesn’t want to completely rely on the success of the ICO to pivot them into profits. Along with the massive token offering, Monster also will be assigning 75 million common stock shares. These shares will let the investors of the coin offering to redeem their tokens at a ratio of 4:1, which means that neither Monster nor the investor will lose the funds used. Though the stocks for Monster Inc. are not even on the stock market in the United States right now, this appears to be a backup plan if the ICO doesn’t succeed.
How Likely Is Monster Inc to Succeed?
As with any ICO and cryptocurrency platform, the success of Monster Inc. will largely depend on the public’s desire to trade on their network. In fact, TokenData, an ICO tracker, has reported that over 50% of the ICOs that were launched in 2017 alone have neither failed or will soon be failing. Consumers and the company have to wonder – will this ICO work?
Most of the time, ICOs fail because they lack value, brand identify, realistic goals, or proper monitoring. Monster Inc. already has the brand recognition, so it’s unlikely that their popularity will cause the failure. They even have over four decades of monitoring their profits and other statistics, so they won’t likely fail for that reason either. However, the big concern will be to see if Monster can command the attention and value from consumers, considering that their expensive cables are not typically in high demand. Realistic goals may be a concern too, since their ICO will be competing with larger and more successful commerce opportunities in the United States and China.
With factors that are both for and against their success, only time will tell.