Jia Yueting is coming to the crypto world to make money?

Written by: 1912212.eth, Foresight News

On August 17, Faraday Future (FF), founded by Jia Yueting, announced the launch of the "C10 Index" and the "C10 Financial Vault" product based on that index, officially entering the crypto asset field. As a pioneering basket index financial vault program for crypto assets by a publicly listed company in the United States, it has attracted considerable market attention. FF stated that this strategy aims to build a dual-flywheel and dual-bridge ecosystem of "EAI + Crypto," deeply integrating AI-driven mobility (EAI) with Web3 technology to promote the full Web3 transformation of the mobility industry.

C10 Index tracks the top ten cryptocurrencies globally (excluding stablecoins), including mainstream assets like Bitcoin, Ethereum, Solana, etc.

On the other hand, C10 Financial Library adopts an investment model of 80% passive and 20% active to ensure sustainable returns. According to its official website, FF will use special financing funds to specifically purchase crypto assets, implying that the ability to raise funds is crucial. If fundraising fails, everything will be in vain. That is, FF needs to raise funds from the market and use those funds to purchase crypto assets. The first phase goal is to purchase 500 million to 1 billion USD worth of crypto assets after obtaining the necessary funds, with an initial allocation of 30 million USD expected to start as early as this week. The long-term vision is to expand to a scale of 10 billion USD and achieve compound growth through staking returns.

FF is establishing a wholly-owned subsidiary named FFAI Crypto Treasury and Bridging Holdings Inc. to conduct cryptocurrency business.

The FF official stated in the announcement that the strategy aims to optimize Faraday Future's profit and loss statement, balance sheet, and cash flow situation. By using on-chain assets as both reserves and flexible capital, this strategy enables Faraday Future to achieve stable staking income, potentially reducing reliance on high-cost financing and enhancing net asset value and structure. Faraday Future's cryptocurrency business and electric vehicle business plan to operate under independent legal and financial frameworks to facilitate risk isolation, operational independence, and asset transparency. Digital assets will be held by third-party custodians and can be fully verified on-chain.

Overall, the revenue from C10 treasury can be used to fund product innovation, stock buybacks, and even apply for a cryptocurrency ETF license. This is not only a financial strategy but also an ecological layout: FF plans to put EAI EV assets on-chain, creating application scenarios of travel + blockchain + cryptocurrency. Jia Yueting's personal experience also influenced this decision—after the collapse of LeEco, he deeply understands the importance of the capital chain. This shift towards cryptocurrency may inject a "compound interest effect" into FF, positioning it as a "cryptocurrency version of the S&P 500," comparable to traditional index funds.

In addition, amid the global cryptocurrency craze, this move can enhance FF's brand exposure and attract crypto investors. FF has also brought in some local dignitaries to "stand for" its cryptocurrency asset strategy, with California State Treasurer Fiona Ma delivering a speech via video to express support for the company's new strategy.

In the first half of 2025, FF will gradually stabilize operations through equity financing and funding injections from partners. The launch of this cryptocurrency strategy is seen as a new attempt by Jia Yueting to "make a comeback", and he promoted this move on Twitter, claiming it will "amplify shareholder and industrial value."

Its stock price has risen from a low of 0.83 dollars at the beginning of this year to a high of 3.6 dollars, an increase of over 400%.

From LeEco to Faraday

Jia Yueting's entrepreneurial career has been full of ups and downs. As early as the LeEco era, Jia Yueting built an internet empire with the concept of "ecological revolution," but in 2017, LeEco's financial chain broke, leading him to accumulate massive debts, and he went to the United States that same year to evade creditors. From a successful entrepreneur to being criticized by everyone as a "deadbeat."

Since then, he has repeatedly promised to "return to the country next week" but has failed to deliver, facing much public criticism.

In 2019, Jia Yueting filed for personal bankruptcy reorganization in the United States to resolve over $3.6 billion in debt. In recent years, he has served as the founder and co-CEO of FF, focusing on the revival of the company. FF has faced challenges such as production delays and funding shortages, but began delivering the FF 91 model in 2023 and will launch a more affordable FF 81 series in 2024. Despite the volatility of its stock price and a significant reduction in market value, Jia Yueting insists on the positioning of "disruptor" and emphasizes the integration of AI and electric mobility.

The electric vehicle industry is highly competitive, with giants like Tesla and Rivian dominating the market, and FF needs to innovate and break through. FF is seeking diversified financing channels to support its high R&D costs. Jia Yueting stated that the "dual-flywheel" strategy will connect the electric vehicle industry with crypto capital, forming a positive cycle through the appreciation effect of crypto assets.

It is worth mentioning that in July this year, FF also announced a strategic cooperation with the digital asset infrastructure platform HabitTrade to enter the RWA market by tokenizing FF assets. In short, this means using the commitment of selling cars to "exchange for financing in USDT, with the promise to return to investors in the future in the form of "yield rights tokens." However, the core of the issue returns to: when can FF deliver the cars? In the 10K form submitted to the SEC in March 31, 2025, FF stated that factors such as company debt and product delivery have uncertainties and risks.

Jia Yueting's recent actions in RWA and the crypto asset treasury, although bold, face risks: the crypto market is highly volatile, and if FF's cash flow issues resurface, it could exacerbate the debt burden. However, if successful, it will enhance FF's brand image and promote the crossover between electric vehicles and crypto. Jia Yueting's dreamer label may perhaps be revitalized in the crypto era.