Electric vehicle startup Faraday Future plans to launch several cryptocurrency-related initiatives, including establishing a crypto asset library and offering tokenized vehicle sales.
The company plans to create the 'C10 (Crypto 10) Asset Library' product and initially purchase $30 million in cryptocurrencies, hoping the final scale can reach billions.
Faraday Future is the latest company, following several publicly listed companies, to plan to purchase cryptocurrencies, a move that has driven up stock prices as Wall Street seeks participation in the crypto market.
Faraday launches cryptocurrency products
The company will also launch the market-capitalization-weighted 'C10 Index' to track the top ten cryptocurrencies (excluding stablecoins) and explore the creation of an exchange-traded fund (ETF).
Faraday stated it will purchase the top ten cryptocurrencies, planning to start with an initial amount of $30 million, with the final purchase amount potentially reaching $500 million to $1 billion.
The company's designed asset library aims to provide sustainable returns through holding coin income for innovation, stock buybacks, and asset growth.
The company also plans to launch the 'EAI Vehicle Chain' for tokenized vehicle sales and cryptocurrency deposits. EAI stands for Entity-based Artificial Intelligence, referring to the integration of AI into physical objects like cars.
California State Treasurer Fiona Ma stated that the plan helps with economic growth, creates high-quality jobs, attracts top investments, and promotes global sustainable development.
The tumultuous history of Faraday Future
Since halting work on its $1 billion factory in Nevada in 2016, the company has been dealing with production delays of its flagship model FF91, with stock prices suffering at times. Reports indicated that only 16 vehicles were delivered as of January, and it is now shifting towards badge-engineered electric vans made in China.
In July, the company disclosed that the U.S. Securities and Exchange Commission issued a warning of enforcement action against founder Jia Yueting and the president, related to false statements in the 2021 SPAC merger.
Company stock price fluctuations
Faraday Future (FFAI) stock closed down 7.6% at $2.77 on Friday. However, the stock has performed well this year, up 75% in the past six months, and a 14% increase year-to-date.