Monster Is Moving Towards An ICO Worth $300 Million
Monster’s Big ICO
Founded 40 years ago, Monster has been around for long enough to see several industry-changing moments with headphones and speakers. It has also seen itself in the unfortunate position of losing profit over the last few years and has now decided to take a major step to pull itself back up again. Said step being an initial coin offering (ICO) of $300 million. This is – up until now – one of the largest ICOs to take place and the first longstanding consumer product to do this.
300 millions tokens could well be offered during the year’s selling timeframe. However, the company has stated that if the tokens do sell out earlier, the sale will be halted. To add to this, and to cover its back, Monster is also producing 75 millions’ worth of common stock shares. It must be noted that the purchase of a token does not provide the owner with any equity or rights within the company, it is merely payment for the Monster Money Network.
What’s The Strategy?
Monster is aiming to use the ICO to collect enough money to be able to manage the distribution of their goods for themselves for once, rather than put the distribution in the hands of retailers. This is something which the company has always relied upon in the past but which now is changing, hopefully for the better.
The dream is to develop a “Monster Money Network” – an eCommerce site – for Monster to sell it’s products online. A completely different way of thinking for the company but one that everyone would agree is the right way to go. If and when the Monster Money Network is up and running, customers can enjoy purchasing Monster products (and possibly others) online using Ethereum tokens.
There are future plans to extend the use of blockchain and add more e-commerce products onto the Monster Money Network. The proposal is not small or short term, that is for sure.
The ICO Helps
Monster has been very strategic with its plans for the years ahead. Not all of the funds gained from the ICO will be used for the technical development of the site. Only 50% of the money will be assigned for this. A further 30% of the capital will be put towards marketing and business/relationship development. From these details alone, it is clear that the ICO is a way to really propel the company to where it needs to be and to be back in the driving seat making profit – which it has not done for a long time. In 2017 alone, the net loss of the company was at a staggering $26.7 million, with the first quarter of 2018 not looking good either – $19.6 million in losses already.
You do have to give credit where it is due, Monster has done everything in its power in the past to reduce its losses including redundancies, finishing product lines and cutting its marketing budget. None of which have had the desired effect but in a last-ditch attempt and not giving up without a battle, Monster has decided to seek the help of the cryptocurrency industry to see where the journey will lead.
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