Are Middle Eastern tycoons using blockchain to resurrect luxury car brands? Is it redemption or a new scam?
Beginner's version:
1. What happened?
A company in the Middle East (EV Electra) spent $1 billion to take over the bankrupt Chinese luxury car brand Gaohe (which once sold electric cars for $700,000 but went bankrupt in 2024). They plan to do something with cryptocurrency:
Issue tokens EVET: $1 per token, buying tokens for cars gives a 20% discount, and you can also receive dividends.
Issue NFTs to become shareholders: Spend $100 to buy an NFT (representing 10 shares), receiving 10% of the profits each year (issued in stablecoins).
2. Why is it considered a scam?
The company is unreliable: EV Electra previously attempted to make sports cars but never mass-produced them, and their website used images from other car companies, facing accusations of fraud.
Tokens could become worthless: If no one buys the tokens or the cars don’t sell, EVET is just a worthless token, and earning dividends is also meaningless.
The Middle Eastern tycoon’s trick: Using Gaohe's brand to fool foreigners into buying tokens, but they might actually want to exploit them.
3. What can ordinary people gain?
If you really want to buy a car: Using tokens can save you 20% (for example, saving $80,000 on a $400,000 car), but you need to stock up on tokens, which might plummet in price.
Want to make money with the tokens: Unless EV Electra truly sells 500,000 cars a year (targeting 2030), the tokens are just a game of hot potato.
4. Summary
This is essentially “car crowdfunding” wrapped in blockchain; the Middle Eastern tycoons want to raise money through concepts to revive Gaohe. Ordinary people should not believe in “laying back to earn dividends,” unless you can bear the risk of significant losses.
Simple advice: Want to buy a car? Wait for mass production. Want to invest? Stay away from cryptocurrencies!
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