Though a well-known manufacturer of audio/video components Monster Products, Inc. has been recently experiencing not the best times of its history, now the company hopes to change the situation and raise $300 million in its initial coin offering.
The company was established 40 years ago. It produces various electronic accessories and distributes its goods via retailers. Nevertheless, now Monster is going to revolutionize the way it is doing its business.
Monster has ambitious plans to create the Monster Money Network which will represent itself an e-commerce platform where the company will trade its products. It is possible that in the future it will add products of other companies to its website.
To implement its ideas into life, Monster team has decided to run one of the major ICOs in the history, offering “monster money tokens”. The company has already filed an application to the U.S. Securities and Exchange Commission.
In case of a successful fundraising round, Monster will allocate these funds for development of their Monster Money Network where users will be able to buy the company’s products with the help of Ethereum tokens.
Monster will issue 500 million tokens. 300 million of them are planned to be sold in the company’s ICO. The ICO will last for one year, or it may end earlier if all the tokens are sold out sooner.
Moreover, the company is going to issue 75 million shares of common stock. It means that if something goes wrong, token holders will have an opportunity to receive one share of stock for every four tokens.
The company plans that their Monster Money Network will be utilized “for payment processing, market analysis, accounting, audit and payroll services, inventory management and shipping operation”. At first all these opportunities will be available relating to Monster products only but then it is planned to include other e-commerce platforms to the network.
The company plans to carry out its project in three stages. The first stage will include a launch of a simple payments system, using an ERC-20 token. In the next stage, thanks to micro-transactions off-chain, the team is going to lower or eliminate transaction costs. And in the third stage, the network will be transitioned to its own blockchain.
The Monster’s filing states:
“In the future, Monster intends to leverage its global connections and brand visibility along with blockchain technology to bring more and more other e-commerce platforms onto Monster Money Network and expand the user base of MMNY Tokens. We hope to set up the blockchain standard for e-commerce platforms.”
All in all, the company is not going to make its tokens the only way to pay for its products. Nevertheless, it is rather obvious that the ICO is a good way to attract public’s attention to the companies activity and to give it a new boost for development.