Estimated reading time: 2 minutes, 40 seconds
Today we’re covering the popular audio equipment manufacturer, Monster.
Monster was founded in 1979 by audiophile Noel Lee with the goal of providing devices that enhanced the users audio experience. I just described them as a headphone maker… But to limit them to that would not be accurate. While headphones might be one of their most popular products, they are also very well known for their Monster cables and other speakers. Basically, if it has to do with audio, Monster probably sells it.
What does this have to do with the blockchain?
Monster announced they are filing for a $300 million ICO. An ICO for headphones? Well, not exactly. Monster is looking towards blockchain technology to help them pivot, or rather create a different retail strategy.
They are going to use the funds to create a digital e-commerce platform housed on the Ethereum blockchain. They are dubbing it the “Monster Money Network.”
With this they will also launch their own Monster cryptocurrency. However, fiat will also be accepted, creating accessibility for both types of users. It’s a good strategy. Launch a marketplace that is as usable as possible. Futhermore, this might be a bridge that takes fiat buyers towards testing out cryptocurrency.
It will be interesting to see if other marketplaces take this same approach. Will creating a dual payment market work as a means to introducing cryptocurrency as to the fiat option.
About the ICO
This move most likely a response to Beats by Dre being acquired by Apple, forcing Monster to look for more unique ways to expand their business.
One of the most interesting facts we actually glossed over above: Monster is FILING for an ICO. The San Francisco based company is doing their best make sure that this ICO is SEC compliant. Interestingly, this is a far cry away from what we saw in 2017. Chairman of the SEC, Jay Clayton, testified that while some ICOs have tried to comply with SEC regulations, zero of these companies actually registered their ICOs.
In order for ICOs to be considered a legitimate investment, American based companies are going to have to go through the SEC. ICOs are now on the SEC’s radar, and we’re likely to see crackdowns on companies that try to run ICOs while ignoring the SEC.
That won’t be the case for Monster. Rather, filing for their ICO might show a trend of businesses turning to the blockchain in a legal manner.
Business on the Blockchain is a new series aimed at keeping you up to date on all of the big business moves towards blockchain technology. More and more businesses are exploring cryptocurrencies and blockchain. We’re here to help you understand how some of these businesses are making this transition. It’s an exciting time for blockchain adoption, check out which businesses are jumping onto the wave!
If you enjoyed this video and series idea, please give us a “Like.” And don’t forget to subscribe to our channel so you can stay tuned for our more installments of Business on the Blockchain! Feel free to reach out too if you have ideas for us to cover!