Headphone manufacturer Monster is planning to hold ICO for $300 million

Headphone manufacturer Monster is planning to hold ICO for $300 million

Monster Products, Inc. for many years losing money, but the initial range of coins (ICO) in the amount of $ 300 million may just be that event which will bring the company to a new level.

Founded in 1978, Monster Products, Inc., engaged in manufacturing electronic accessories such as headphones and a Bluetooth headset. All the years of existence, the company relied on retailers to sell its goods. In the modern world, the Monster decided to go a different way.

According to the statement of the Commission on securities and stock exchanges of the US, Monster is planning to launch one of the largest ICO, selling “monster money tokens” to build “Money Monster Network”, the new e-Commerce site to sell their products (and possibly products of other companies) on the Internet.

As part of the plan Monster will create 500 million tokens and sell 300 million when conducting the ICO. If during the year the plan is not successful, the company produces 75 million of its common stock that can be exchanged tokens at the rate of 1 to 4.

It is noteworthy that the token is designed as a payment method on the web e-Commerce site. However, the statement indicates that this may not be enough to avoid the securities act.

Monster also apply to use the designation “emerging company” in accordance with the labour Law, which provides for lightweight requirements for information disclosure and greater rights to attract investors.

Also, the application stated that the Money Monster Network will be used for “payment processing, market analysis, accounting, auditing and payroll, inventory management and operations for the delivery of” related to Monster products sold on the Internet.

The startup process consists of three stages. At first it will be just a system of payments using a token ERC-20. In the next step the network will reduce or eliminate transaction costs by enabling micro-transactions that are outside the network.

At the final stage, the platform will move to its own blockchain.

“In the future, Monster intends to use its global communication and brand together with the technology of the blockchain to attract more and more other e-Commerce platforms in the Monster Money Network and expand the user base token MMNY. We hope to establish the blockchain-the standard for e-Commerce platforms “

More than half collected in the course of ICO is the technical development of the network, but approximately one third will be spent on marketing and developing relationships with partners who will sell the products Monster.

In other words, it seems that the new tokens will ever be the only way to purchase headphones and Monster cables, and it seems obvious that ICO in a large extent, the strategy to increase sales of products to the millions of dollars.

ICO is not the first measure that the company has taken to stay afloat. Monster cut staff, reduced marketing budget and even shut down a plant in Mexico. Despite all this, the independent auditors expressed substantial doubt about the company’s ability to continue operations.

Instead of surrender, Monster decided to raise $ 300 million to share the burden of some of the most successful companies in history:

“We consider Amazon, Ebay and Alibaba as the main competitors of a new network of Monster Money and our existing ecommerce platform”.

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