US Phone Accessory Company Monster Plans USD 300 Million ICO

The loss-making manufacturer turns to crypto for funding a project that will compete with Amazon and Alibaba.

by Marin Marinov
31 May • 3 min
In News

US maker of headphones and audio cables Monster Inc plans a USD 300 million Initial Coin Offering (ICO) for building a blockchain-based e-commerce site, a company filing with the US Securities and Exchange Commission (SEC) revealed. The California-based loss-making manufacturer intends its new project, dubbed Monster Money Network, to be competitive to the global giants in e-commerce – US Amazon and E-bay, and Chinese Alibaba.

“We face significant competition in the retail consumer electronic industry in the U.S. and international markets. We anticipate that the competition will increase in the future... And 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 Monster Inc. filing stated.


The Monster’s ICO

Monster’s ICO, planned to last for about a year, will offer 300 million of Monster Money Tokens (MMNY) at a price of USD 1. The company expects fluctuation of around USD 0.10, which can result in a crowdfunding of USD 300 million plus/minus 10%. The token sale can be stopped earlier if there is high investor interest.

Monster also plans to issue 75 million common stock as a guarantee for token investors if the Monster Money Network launch fails. The company outlines several risks: unsuccessful design and marketing strategy for its brands, rapidly changing consumer culture that permanently wants innovative products and highly competitive electronic industry.

MMNY will be an Ethereum-based ERC20 token with a total cap of 500 million coins, 200 million of which will be issued after the end of the ICO. MMNY should be used as a payment method along with fiat money in the Monster Money Network shopping site. The company plans also an own wallet.

Monster, established in 1978, traditionally sells most of its products through physical shops, but decided to turn to a crypto funding model and a blockchain-based e-commerce site due to tough competition from online retailers and poor success of its current online shop. The company reported a net loss of USD 29 million for 2016, which shrank to USD 26.7 million for 2017. However, for the first quarter of this year, it has a loss of USD 19.6 million.

“Monster’s current business strategy is shifting focus away from simply building its product range to pursuing alternative retail platforms and implementing new marketing campaigns. Over the next five years, Monster’s business strategy is to revitalize relationships with the Company’s existing retail relationships as well as target expansion into new retail venues,” California-based manufacturer explained in the SEC filing.

Monster’s ICO is one of the biggest SEC-registered crypto funding projects, along with the now-cancelled Telegram ICO. The California-based headphone manufacturer filed the registration form with the Commission on May 25, a few days before the joint North American regulators' operation against crypto scams. Earlier this week, SEC halted an allegedly fraudulent TBIS ICO after obtaining an emergency court order.