Headphone and cable maker – Monster Products, Inc – is planning the largest ICO in the history of ICOs. The company is known to have initially owned the rights to Beats headphones, but sold it off to Interscope Records, who then sold Beats to Apple.
Now, the company intends to raise $300 million in an effort to set up a global payment system while simultaneously turning around the company’s financial situation.
The company was founded in 1978 and made a variety of electronic accessories as its main line of business up until now. Monster intends to create and sell monster money tokens that will make up the Monster Money Network – an e-commerce website with the purpose of selling its goods, according to an application with the US Securities and Exchange Commission.
The Monster Money Network would then be using Ethereum to power the tokens and smart contracts needed for the network. Monster is not the first company to engage in ICO projects to make it profitable again, but is the first big brand supplier of a consumer product to do so.
The ICO will involve the creation of 500 million tokens while selling off 300 million to the public in the initial offering (ownership of tokens does not come with voting rights). 75 million shares of common stock will also be issued so that, should the ICO fail to launch, the company will exchange one share of stock for every four monster tokens to serve as refund.
What The Project Is All About
Monster’s application with SEC disclosed quite the detailed plan for the project. The funds it will be raising would be used to setup everything "for payment processing, market analysis, accounting, audit and payroll services, inventory management and shipping operation" as far as online selling is concerned.
The first phase of the project will be to build the payment system through the use of an ERC20 compatible token. It then proceeds to enable off-chain micro-transactions to make transactions cost nothing or at least lower significantly. Finally, it will migrate to its own blockchain outside of Ethereum.
Once everything is setup, the company will be considering strategic partnerships as it said in a statement:
"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."
Of the $300 million to be raised, more than half will be designated for the technical aspect of the network. One-third is then allocated for marketing both Monster products and the new protocol itself as well as developing strategic partnerships who aid in the selling of Monster products.