A Monster ICO
The company most famous for losing control of the world famous Beats Headphones brand is now filing an ICO. Registering with the SEC, Monster Products, Inc. is selling Monster Money Tokens in a $300 million offering.
“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.”
Of course, Monster has been losing money for years and by most accounts is considered a cautionary tale in what not to do with valuable intellectual property. But, like many failing companies on their last gasps, Monster is trying to raise money on the hope of blockchain and the buzz created therein. The dubious moves of Kodak and the Kodakcoin, which was designed to “give photographers more control over their property,” but, in appearance looked like a dying attempt to stay relevant.
As part of their plan, Monster will create 500 million tokens and sell as many as 300 million in its offering. The offering will run for one year, unless it sells out sooner or it decides to cancel the sale early. The company is also issuing 75 million shares of common stock so that, if the network fails to launch, it can exchange every four tokens for one share of stock (in lieu of returning the money).
The Monster Money Coins do not come with equity or voting rights, but rather are solely tokens that can purchase Monster Products at a discount. Then, the SEC filing states that the Monster Money Network will be used for “for payment processing, market analysis, accounting, audit and payroll services, inventory management and shipping operation” relating to Monster products sold online. From there, it hopes it can recruit other e-commerce platforms onto the network.
“We believe the blockchain innovation will bring disruptive advancement to our E-commerce and business operation systems,” continues the filing.
All that said, Monster Money Tokens will likely not be the only way to purchase company products and the ICO appears only to be a marketing ploy for a cash jumpstart. The company acknowledged they might never be profitable again and have laid off workers recently to boot. At the end of last year, it had a net loss of $26.7 million, but it has already lost another $19.6 million in the first quarter of 2018, so the pace of losses are gaining momentum.
These kind of ICOs give the industry a poor reputation, but to cement the pitiful-ness of this unique debacle, Monster announced that its only competitors were Amazon, Ebay and Alibaba.
” We consider Amazon, E-bay and Alibaba as examples of our main competitors with respect to the new Monster Money Network and our existing E-commerce platform,” the filing notes.