“EVAIO has made contact with Faraday Future to invest 900 million USD over three years via indirect STO. FF and EVAIO will now start up the discussion for the details of the plan,” posted Patrick De Potter, CEO of a blockchain startup named EVAIO, on Nov.13.
“We have been following the electric vehicles developed by Faraday Future when we worked at Tesla. FF91 is one of our favorite EVs.” Potter said.
STO stands for Security Token Offerings, a term in the blockchain industry. According to 11-11 ventures, security tokens are the solution to liquidity and compliance problems. It allows companies to tokenize any tangible assets, including equity, real estate or debt.
The $900 million financing is said to be Faraday Future’s desperate way out. The company has been under financial crisis ever since it was involved in severe legal conflicts with Evergrande Health in October. The EV startup thus separated ways with the investor completely, issuing a statement on Oct.25, saying it has won this urgent arbitration and would open up global financing.
As expressed in the statement, “Previously, Evergrande has tried to gain control of FF and its global intellectual property through unreasonable and unequal means.”
However, according to TMT Post, though acting in the name of a new investor, EVAIO is more precisely an underwriter of this financing, with no legal foundations. EVAIO has actually not obtained the transfer rights or purchasing authorization from the FF company, however it attempts to help FF acquire financing by tokenizing assets and selling to individual investors.
Faraday Future, is not as ignorant of this as it claims. It is reported that the two sides have signed confidential agreements in this term.
Featured photo credit to Bitcoin Exchange Guide