I honestly thought it was a parody article till about halfway through. Still not sure if it’s just a PR play or if they’re actually trying to build this out.
According to a filing with the U.S. Securities and Exchange Commission, Monster is planning to run one of the biggest ICOs of all time by selling "monster money tokens" to build the "Monster Money Network," a new e-commerce site for selling its products (and potentially those of other companies) online.
I honestly thought it was a parody article till about halfway through. Still not sure if it’s just a PR play or if they’re actually trying to build this out.
At first I misread the title as IPO and was wondering what you were talking about...then I realized it said ICO. Who decided this was a good idea? I hope they're not betting the house on this, it...
At first I misread the title as IPO and was wondering what you were talking about...then I realized it said ICO.
Monster Products, Inc. has been losing money for years, but a $300 million initial coin offering (ICO) may be what it takes to turn the company around
Who decided this was a good idea? I hope they're not betting the house on this, it feels like they're late on the scamcoin ponzi bandwagon, and even if they're legitimate, their predecessors have likely shattered public trust in most ICOs, which will hamper their growth.
Nevertheless, the filing admits, "Our independent auditors have indicated ... that there is substantial doubt about our ability to continue as a going concern."
I would seriously advise against buying into this crypto currency if it ever comes to fruition - their auditors believe the company is not going to be around much longer, and this is a last ditch effort. That's not a platform I'd lock up my money in, knowing that in the event of bankruptcy that you'd get pennies on the dollar if anyone was buying these at all, while Monster's creditors suck up its remaining assets.
Edit: to elaborate, the "going concern" statement is accountant-speak for "we expect the company will be unable to pay its debts and the creditors will start knocking pretty soon." I'm not an accountant, but that's my minor so I've taken several courses in it. If there are any other accountants here, feel free to correct me if I'm misreading their financial statements. From their most recent SEC filing:
Our auditors have issued a “going concern” audit opinion.
Our independent auditors have indicated, in their report on our December 31, 2017 financial statements, because of our recurring significant operating losses and net capital deficiency that there is substantial doubt about our ability to continue as a going concern. A “going concern” opinion indicates that the financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result if we do not continue as a going concern. Therefore, you should not rely on our balance sheet as an indication of the amount of proceeds that would be available to satisfy claims of creditors, and potentially be available for distribution to shareholders, in the event of liquidation.
They could declare bankruptcy and attempt to restructure their debts (their current liabilities are almost double their total assets, make of that what you will), but given how their loss from operations in 2017 was over $22 million, they weren't even making money before taxes and interest payments. Even if they were to wipe out their liabilities, without serious restructuring, they will burn through their remaining $7.8 million (cash and cash equivalents) in less than a year.
But just ignoring the dire financial state, there's this (from the article):
The company is also issuing 75 million shares of common stock so that, if the network fails to launch, it can exchange every four tokens for one share of stock (in lieu of returning the money).
This means that if this cryptocurrency doesn't launch (even if they get their $300 million), you won't get a refund on your coins - just common stock that is going to be worthless in bankruptcy proceedings, since their creditors will have already stripped the company's assets before the shareholders can receive any funds from the liquidations.
Edit 2: if anyone is wondering, no, this is not the Monster that produces energy drinks. This is Monster Products, Inc, which produces those insanely overpriced HDMI cables. They also make some headphones (they used to produce Beats by Dre), speakers, and phone chargers, as well.
Monster has been selling overpriced garbage for years. I'm honestly surprised it took them this long to have an ICO. It seems absolutely fitting for their brand.
Monster has been selling overpriced garbage for years. I'm honestly surprised it took them this long to have an ICO. It seems absolutely fitting for their brand.
True, I remember when reddit first stumbled upon their overpriced HDMI cables and started spamming fake positive reviews (though I wouldn't be surprised if Monster already paid for fake reviews)....
True, I remember when reddit first stumbled upon their overpriced HDMI cables and started spamming fake positive reviews (though I wouldn't be surprised if Monster already paid for fake reviews). Sadly, some people won't realize what a bad idea this is, and think "a real, 'legitimate' company going into crypto? Now's my chance to get in on the next Bitcoin!" I've seen far too many depressing (and rage-inducing) posts on r/Bitcoin of people who lost big, I'm sure this will attract similar sob-stories.
Agreed, it does seem like a last-ditch effort to gain a little PR for an already failing company. I think I already milked Monster for everything I'm going to get back in the days of buying 1/4"...
Agreed, it does seem like a last-ditch effort to gain a little PR for an already failing company. I think I already milked Monster for everything I'm going to get back in the days of buying 1/4" instrument cables and getting free replacements every time I'd run over them with a cab or road case.
It took until someone started mentioning overpriced HDMI cables until I put two and two together, and even then it only sorta clicked. I wonder if any bad news for this company ever affects the...
It took until someone started mentioning overpriced HDMI cables until I put two and two together, and even then it only sorta clicked.
I wonder if any bad news for this company ever affects the energy drink one
I honestly thought it was a parody article till about halfway through. Still not sure if it’s just a PR play or if they’re actually trying to build this out.
I'm still not convinced all ICOs aren't massive jokes... even the ones where the creators think they're doing something serious/important/valuable. ;)
At first I misread the title as IPO and was wondering what you were talking about...then I realized it said ICO.
Who decided this was a good idea? I hope they're not betting the house on this, it feels like they're late on the scamcoin ponzi bandwagon, and even if they're legitimate, their predecessors have likely shattered public trust in most ICOs, which will hamper their growth.
I would seriously advise against buying into this crypto currency if it ever comes to fruition - their auditors believe the company is not going to be around much longer, and this is a last ditch effort. That's not a platform I'd lock up my money in, knowing that in the event of bankruptcy that you'd get pennies on the dollar if anyone was buying these at all, while Monster's creditors suck up its remaining assets.
Edit: to elaborate, the "going concern" statement is accountant-speak for "we expect the company will be unable to pay its debts and the creditors will start knocking pretty soon." I'm not an accountant, but that's my minor so I've taken several courses in it. If there are any other accountants here, feel free to correct me if I'm misreading their financial statements. From their most recent SEC filing:
They could declare bankruptcy and attempt to restructure their debts (their current liabilities are almost double their total assets, make of that what you will), but given how their loss from operations in 2017 was over $22 million, they weren't even making money before taxes and interest payments. Even if they were to wipe out their liabilities, without serious restructuring, they will burn through their remaining $7.8 million (cash and cash equivalents) in less than a year.
But just ignoring the dire financial state, there's this (from the article):
This means that if this cryptocurrency doesn't launch (even if they get their $300 million), you won't get a refund on your coins - just common stock that is going to be worthless in bankruptcy proceedings, since their creditors will have already stripped the company's assets before the shareholders can receive any funds from the liquidations.
Edit 2: if anyone is wondering, no, this is not the Monster that produces energy drinks. This is Monster Products, Inc, which produces those insanely overpriced HDMI cables. They also make some headphones (they used to produce Beats by Dre), speakers, and phone chargers, as well.
Monster has been selling overpriced garbage for years. I'm honestly surprised it took them this long to have an ICO. It seems absolutely fitting for their brand.
True, I remember when reddit first stumbled upon their overpriced HDMI cables and started spamming fake positive reviews (though I wouldn't be surprised if Monster already paid for fake reviews). Sadly, some people won't realize what a bad idea this is, and think "a real, 'legitimate' company going into crypto? Now's my chance to get in on the next Bitcoin!" I've seen far too many depressing (and rage-inducing) posts on r/Bitcoin of people who lost big, I'm sure this will attract similar sob-stories.
Agreed, it does seem like a last-ditch effort to gain a little PR for an already failing company. I think I already milked Monster for everything I'm going to get back in the days of buying 1/4" instrument cables and getting free replacements every time I'd run over them with a cab or road case.
at first I thought it was referring to the energy drink company
It took until someone started mentioning overpriced HDMI cables until I put two and two together, and even then it only sorta clicked.
I wonder if any bad news for this company ever affects the energy drink one