It’s pretty safe to say that as it stands, E-Commerce and online shopping is dominated by Amazon. As a company of course, Amazon do just more than provide an online marketplace, overall though it is their marketplace that powers the entire Amazon platform. Therefore, you might consider it very brave of a company to try and compete with this.
Monster (formerly, Monster Cable) the company behind Beats Headphones among other tech products, believe they may have the formula to create a platform that is, as big as, if not bigger than, Amazon. That formula lies within blockchain technology, something that thus far Amazon don’t seem to have tapped in to.
In order to fund this new project, Monster are alleged to be creating a new cryptocurrency, named Monster Money Token, which will be available in the most ambitious Initial Coin Offering (ICO) seen to date. Within this ICO, Monster claim to look to raise $300 Million, through the production of, and sale of, 300,000 Monster Money Tokens, with an initial value of $1.00 per unit.
According to Market Watch, this comes after Monster filed an application with the United States Securities and Exchange Commission (SEC), in order to get the ball rolling so to speak.
The SEC application states:
“Monster continues to incur operating losses, with a net loss of $26.7 million in 2017, and a $19.6 million loss in the first quarter of 2018. The amount of future losses and when, if ever, we will achieve profitability are uncertain.”
This suggests that overall, the aim of Monster here is to spring some life back into their company. Without a new idea, a new design and a new approach, Monster may end up falling into administration. This therefore seems to be a last-ditch attempt to revitalise the business, in doing so, a move towards blockchain technology under the premise that with it, Monster believe they could become fierce rivals to Amazon. According to Market Watch, a representative from Monster has said:
“We intend to utilize the blockchain technology to our marketing, accounting and audit, internal control and shipping management functions,” the company said in the filing. “We believe the blockchain innovation will bring disruptive advancement to our e-commerce and business operation systems.”
Whilst it seems like a tricky task, Monster seem intent on making this happen. It does seem very utopian. A $300 Million ICO would be colossal and moreover, an attempt to bring down Amazon does seem almost unachievable. Let’s remember though, stranger things have happened and the blockchain is an intelligent platform. It’ll be interesting to see how this develops, therefore, we will keep an eye on this story for you.