Monster Products, the manufacturer of audio and video cables and other related electronics such as headphones, is considering cryptocurrency as a means to spark new growth in the company after a bout of financial decline. To achieve the turnaround Monster seeks, the company plans to launch what many are calling the biggest initial coin offering ever, at $300 million dollars.
According to a filing with the United States Securities and Exchange Commission, Monster will sell “Monster Money Tokens” to fund the creation of a “Monster Money Network.” Monster Money Network will become an e-commerce platform for the company, selling its own products and potentially products from retail partners.
The San Francisco-based Monster plans to create 500 million Monster Money Tokens, and offer up to 300 million in the initial coin offering, which Monster will run for one year barring an early sell out or unforeseen circumstance. The tokens will be offered at $1 each.
Monster also will issue 75 million shares of company stock that will be used as a backup plan should the Monster Money Network fail to launch. Rather than return money to investors, four Monster Money Tokens can be exchanges for one share of Monster stock.
The filing outlines that the Monster Money Network will be used for everything from payment processing, to market analysis, accounting, auditing, payroll, inventory management, and more. Monster hopes, in the future, 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."
Monster reported a $26.7 million loss in 2017, and another $19.6 million in losses in Q1 2018 alone. Like many other traditional brands struggling to evolve, Monster hopes that launching an initial coin offering will help to solve its financial woes. Previously, Kodak announced the plans for their KodakCoin ICO, which sent the company’s stock value through the roof.