Monster Products is joining a list of companies jumping on the blockchain bandwagon. Monster is the electronics company that has brought you products such as BEATS headphones, and countless audio accessories over the years. Due to the company’s financial woes in recent years, paired with the blockchain boom, Monster is looking to pivot their model and create an e-commerce platform. The end goal is to create this platform utilizing blockchain, and have it compete with current giants in commerce. Taking a pre-emptive approach, Monster has filed their intentions for an ICO with the SEC. In their filing it was stated, “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 proposed platform is all encompassing. Monster plans to integrate their proposed platform into supply chain management, payroll, and anywhere else that it will result increased efficiency. Per the SEC filing, this integration will develop a “blockchain and ecosystem for Monster customers, operations, vendors and business partners.” The following is an excerpt from their filing, detailing a multi-stage process that will be followed to attain their goals:
|1.||Monster Product R&D|
We have a talented research and design team that is experienced in engineering and creating new electronic products. We are currently developing a number of new product lines, including Monster TV and safe portable Monster power products. We are co-developing Monster TV with Hisense, a well-recognized television brand and manufacturer based in China. Our future safe power products include single chargers, multi-charging stations and wireless charging. The first product of this type will be “The Executive” Monster Power Bank which will include both a speakerphone and battery charging station.
|2.||Monster Money Network & E-Commerce|
We plan to implement and integrate blockchain technology onto our E-commerce website where upon the operation thereof, consumers will be able to purchase Monster products and pay for services in MMNY Tokens. In addition, not only will our customers have the options of transacting in MMNY Tokens or fiat currencies on Monster Money Network, our vendors, such as manufacturers and distributors, will be able to conduct transactions through smart contracts and in both MMNY Tokens and fiat money upon completion of Stage 3 of Monster Money Network.
Specially, the Company develops and intends to complete the development of Monster Money Network in the following three stages as set forth below:
|●||Stage I: Monster Money Network intends to provide the basic transactional functions, such as Monster Money
Wallets and processing transactions in MMNY Tokens;
|●||Stage II: establish a private off-chain platform where micro-transactions can be completed without or with very
limited transaction costs caused by mining activities (“gas”).
|●||Stage III: complete Monster’s blockchain and integrate such blockchain to the operating systems of the Company,
such as marketing, accounting and auditing, payroll services, inventory control and shipping management.
The filing took place on May 25th, and details their plan for the creating of the self-titled ‘Monster Money Network’. Their planned ICO will take part over the course of a full year, with the intention of raising $300 million USD to fund their endeavour. The proposed network will have a token cap of 500 million. While retaining 200 million, Monster will release up to the remaining 300 million tokens at a fixed price of $1.00 USD.
This form of mega-ICO has been utilized multiple times before. Both EOS and Telegram have raised staggering sums of money by hosting their ICO for extended periods. Over the course of 350 days, EOS raised over $2.6 billion USD. EOS has since gone on to continue production of one of the more promising platforms to date.
This pivot from a struggling company into the blockchain world is nothing new. They have also been met with mixed success so far. In recent months we have seen other companies such as ‘Kodak’, ‘Atari’, and even ‘Long Island Iced Tea’ look to capitalize from the boom. In dramatic fashion, upon announcement of simply changing their name, now titled ‘Long Island Blockchain’ saw their marketcap nearly double in value. They have since come back to earth, and been delisted from NASDAQ entirely as they have not maintained a marketcap above the minimum requirement.
What all of this tells us is that extended ICOs are very lucrative and have led to modest success thus far. The success of current struggling businesses that pivot in to blockchain has been met with mixed outcomes. Blockchain has many fantastic qualities, but if a business is struggling, it will likely continue to do so – despite adding blockchain to its name.