Jia Yueting announces entry into the Crypto Assets industry

Author: Martin

From building cars with PPT to creating assets with code, Jia Yueting's financial magic wand has turned towards cryptocurrency, while a group of traditional industry entrepreneurs have quietly laid out their plans on this digital gold path.

On August 17, Faraday Future (FFAI) founder Jia Yueting announced the launch of the "EAI + Crypto Dual Flywheel Strategy," planning to invest $500 million to $1 billion to purchase the top ten mainstream crypto assets (excluding stablecoins), with the goal of creating the first crypto asset index fund in the US stock market, FFAI C10 Treasury, and applying for a crypto ETF license.

Faraday Future aims to accumulate and compound a global top ten cryptocurrency asset portfolio, with the goal of becoming the preferred treasury for the top ten crypto investment portfolios. If progress goes smoothly, the future asset scale could leap to hundreds of billions of dollars, attempting to use the "fast cash flow" of cryptocurrency assets to support the "slow ecosystem" of the car manufacturing business.

####Traditional industries crossing into crypto: Those who jumped into the "rabbit hole"

Jia Yueting is not an isolated case; a number of entrepreneurs from traditional industries have already sensed the opportunities in the crypto world, and their transformation is more pragmatic and in-depth.

The food company DDC Enterprise Limited (formerly DayDayCook), listed in New York, saw its stock price surge tenfold within three months this year. The secret behind this is the company's "Bitcoin Declaration" released in May, which positions Bitcoin as a core reserve asset.

Founder Norma Chu comes from HSBC Private Banking. This traditional finance elite led the company to accumulate 368 BTC from scratch in 45 days, with a holding value of 43.42 million USD. She publicly stated: "Bitcoin is not a speculative asset - it is a strategically significant reserve asset that can provide long-term security for our company."

The company's long-term plan: to accumulate 5,000 BTC over three years, aiming to rank among the top three publicly listed companies in terms of holdings. The company is adopting a rare aggressive strategy in the industry, positioning Bitcoin as a core reserve asset. Future developments should focus on the efficiency of its financing usage and market volatility risks.

An earlier transformer is Taiwanese entrepreneurial veteran Neo (Peng Jinbao), who, after building a multinational automotive parts company, jumped into the "crypto rabbit hole" in 2015, turning an initial investment of 200,000 yuan into 2 billion yuan, and is referred to as the "investment master" in Taiwan's crypto circle.

In 2020, he founded the digital asset exchange Cyberbank, aiming to "make digital assets benefit more people." According to Neo, "the sinking market is always the largest track," and he sleeps in the office four days a week, fully devoted to this new venture with an empty cup mindset.

####The Future of the Crypto Market: Technology, Regulation, and Capital Dance Together

• Technological innovation drives explosion

Blockchain technology is evolving towards high efficiency and low consumption: Ethereum upgrades and zero-knowledge proofs (ZKP) enhance transaction speed; Layer 2 solutions reduce transaction fees; DeFi (Decentralized Finance) and RWA (Real World Asset tokenization) are broadening application scenarios. It is predicted that by 2025, the total market value of cryptocurrencies may exceed $7 trillion.

• Regulatory Breakthrough and Institutional Entry

The United States passed its first federal cryptocurrency legislation, the "Genius Act," allowing cryptocurrencies to enter 401(k) retirement savings plans; the SEC launched "Project Crypto" to regulate the market. The clarification of policies has attracted institutions like BlackRock and Fidelity, the latter of which has already launched crypto custody services.

• Can Jia Yueting's "dual flywheel" get spinning?

According to the FF plan, the C10 Treasury adopts an "80% passive index + 20% active management" strategy, and the returns will be distributed according to the "3-3-3 principle": 1/3 for vehicle manufacturing, 1/3 for reinvestment, and 1/3 for stock buybacks.

However, the doubts continue:

• The FF production vehicles have delivered only a two-digit number, yet packaged 10,000 pre-sale orders as "future revenue rights" tokens for financing, and have been accused of "filling real gaps with promises";

• If the token is deemed by the SEC as an "unregistered security," FF will face regulatory scrutiny.

Behind the rush of traditional enterprises to lay out in cryptocurrency is a profound change in market dynamics. Bitcoin's status as "digital gold" is increasingly solidified, with its price once breaking through $120,000 in 2025, and its market capitalization reaching $2.36 trillion, surpassing giants like Amazon and entering the top five global assets.

The market structure is also undergoing a critical shift, with Coinbase's latest report showing that Bitcoin's dominance has fallen from 65% to 59%, signaling that the altcoin season is approaching. The institution predicts that starting in September, other cryptocurrencies will replace Bitcoin as the dominant force in the market.

Ethereum is widely regarded as the leader of the altcoin bull market, with the ETH/BTC exchange rate rising by 54.56% in 30 days. The on-chain transaction volume reached a historic high of $238 billion in July, and Standard Chartered has raised its 2025 ETH price target from $4,000 to $7,500.

As the crypto market moves from the fringe to the mainstream, new rules of the game are being established. For Jia Yueting, however, the outcome of this game still depends on that old question: can the car really be built?

When faith has a token price, trust becomes the most scarce underlying asset.