Faraday Future will buy $30M in crypto, eye “tens of billions” more, and explore a crypto ETF while launching tokenized car projects.
Faraday Future, an electric car startup, announced it will start several cryptocurrency-related projects, such as setting up a cryptocurrency treasury and selling tokenized cars.
Faraday Future, which is listed on the Nasdaq, announced on Sunday that it will develop a “C10 (Crypto 10) Treasury” product and initially purchase $30 million worth of cryptocurrency, which it believed “could reach tens of billions in size.”
Ian Calderon, co-creation officer of Faraday Future and founding board member of the California Blockchain Working Group, stated that the cryptocurrency market may see a very long bull cycle in the upcoming ten years.
Faraday Future was the most recent publicly traded business that aimed to purchase cryptocurrency.
This trend has seen billions of dollars in funding and has contributed to a rise in share prices as Wall Street seeks to increase its exposure to the cryptocurrency market.
Faraday Introduces Its Cryptocurrency Basket Product
In addition, Faraday Future announced that it is investigating the possibility of creating an exchange-traded fund (ETF) and is launching a market-cap-weighted basket fund called the “C10 Index,” which tracks the top 10 cryptocurrency assets, excluding stablecoins.
The company stated it would buy $500 million to $1 billion in cryptocurrency, starting with its initial $30 million tranche.
It would also begin a strategy to buy the top 10 cryptocurrencies in addition to the index and ETF plans.
According to the business, the treasury is intended to generate sustainable investment yields that “can fund product innovation, potential stock buybacks, and further asset growth.”
Additionally, the business intends to introduce an “EAI Vehicle Chain” enabling cryptocurrency-based deposits and tokenized car sales.
Embodied AI, or EAI for short, is AI that has been physically incorporated into everyday items like automobiles.
The initiative “has the potential to boost our economy, create high-quality jobs, attract top-tier investment, and advance sustainable development worldwide,” said California State Treasurer Fiona Ma, who supported the action.
Complicated Past Of Faraday Future
The company’s shift to cryptocurrency coincides with a transition period;
in 2016, it paused construction on a $1 billion electric car facility in Nevada, which resulted in production delays of its flagship vehicle, the FF91, and a decline in share price.
According to reports, the EV firm delivered only 16 cars in January and just switched to rebranding electric vans manufactured in China.
Faraday Future revealed in July that, following a three-year fraud investigation that centered on allegedly false statements made during the company’s 2021 SPAC merger, the US Securities and Exchange Commission threatened to take enforcement action against its founder, Jia Yueting, and president, Jerry Wang, through a Wells notice.
Slide Of Company Shares
At $2.77, Faraday Future (FFAI) shares closed Friday’s trading session down 7.6%.
However, Google Finance said the shares have done well this year, rising 75% over the last six months to reach 14% year-to-date gains.