- EV startup Faraday Future unveiled its plan to launch several initiatives on AI and crypto.
- Its crypto-based strategy includes the integration of a crypto treasury, NFT assets, tokenized vehicle sales, and a basket ETF.
Faraday Future (FF), despite its founding in 2014, remains within the startup category. After a rocky start marred by financial struggles and tussles with the US Securities and Exchange Commission (SEC), the automaker is turning a new leaf and is adopting a cryptocurrency-focused strategy.
Faraday Future Makes Its Move to AI and Crypto
According to a press release on Sunday, the California-based publicly traded company under Nasdaq plans to launch new AI (artificial intelligence) and crypto initiatives. These include its creation of a crypto treasury, tokenized vehicle sales, non-fungible tokens (NFTs), and a basket of crypto exchange-traded funds (ETFs).
Ian Calderon, Co-Creation Officer of FF and Founding Board Member of the California Blockchain Working Group, believes “the next decade could be a super long bull cycle for the crypto market.” Hence, they are looking to harness the opportunities it presents to build their “dual-engine circular growth system” within the EAI Vehicle Chain.
FF’s strategy combines the long-cycle, high-value EAI (Embodied AI) EV ecosystem with the short-cycle, high-velocity crypto ecosystem. In this context, EAI refers to the integration of AI into tangible systems, such as robots, autonomous vehicles, and other machines, allowing them to integrate with the physical world.
The company explained that the two aspects empower each other into the development of the next stage of evolution in mobility and financial innovations.
The C10 Index and Crypto Treasury Plan
In addition, FF will launch its C10 Index and C10 Treasury alongside its AI, crypto, and EV advances. The former is a weighted basket of the world’s top crypto assets by market cap. The list excludes stablecoins like Tether’s USDT and Circle’s USDC.
To date, the top 10 cryptos by market cap, excluding stablecoins, are Bitcoin (BTC), Ethereum (ETH), XRP, BNB, Solana (SOL), Dogecoin (DOGE), Tron (TRX), Cardano (ADA), Chainlink (LINK), and Hyperliquid (HYPE).
Meanwhile, FF stated that it will launch the C10 Treasury strategy anchored on accumulating the top 10 crypto assets under the C10 Index. It aims to build a digital stockpile of $500 million to $1 billion based on these digital assets, with the initial purchase set for $30 million.
FF will base the assets’ allocation on an 80% passive and 20% active strategy. The treasury is structured to provide sustainable yields through staking with an estimated 3% to 5% returns. The company plans to utilize the proceeds for its expansion, innovation, stock buybacks, and asset growth.
Furthermore, FF is evaluating the possibility of introducing a basket ETF based on the C10 Index. However, details about the matter are still scarce.
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