Elio Motors, a troubled automotive startup is starting its own cryptocurrency. The Cryptocurrency is initiated in order to fund the production of its three-wheeled vehicle. The firm is launching ElioCoin. It is offering to investors which aids from financial firm Jones Trading. Overstock.com an online retailer is on the process to become an investor to Elio.
Elio was released by Paul Elio in the year 2009. It is promoting a small and reasonably-priced three-wheeled vehicle. Elio is claiming that vehicle will be fuel efficient and achieves an EPA rated 84 mpg on the highway. It is original price is $6,800 through the price which was raised last year at $7,450.
The company has started using cryptocurrencies. It is a digital currency like Bitcoin which raises money and Elio destines ElioCoin to be the safer bet than other offerings. Eliocoin is providing a “Securitized Token Offering”. It means that it is subjects to stricter regulations and offers only to financial institutions and certified to investors.
Elio has secured a former General Motors plant in Shreveport, Louisiana. It has built the vehicle but has only examples to construct the process which has pre-production prototypes. Elio predicts that associating with Jones Trading has to lead the offering and it keeps on adds interesting sway.
The investors of Eliocoin will redeem ElioCoins for actual Elio Vehicles although the company is not willing to discuss what exactly will work yet. The Overstock.com is currently negotiating to become the lead investor in ElioCoin sale.
The Overstock is planning a convention equity investment in Elio. The Elio isn’t discussing the amount of the investment. However, the price is predicting to rise through the coin offering. Therefore, the tokens are traded on Overstock subsidiary tZero.
This is not the first time Elio has restored the unorthodox fundraising methods. In the year 2015, the company released a fundraising campaign it aims at so-called non-accredited investors. This avows the company to collect small amounts of money from a large group of investors. However, this is just similar to Kickstarter campaign on steroids. The Elio has struggled and raised over $20 million
As per reports, Elio claims to have 65,000 reservations for its three-wheeler. Elio has repeatedly delayed the begin of production due to the lack of funds. However, in August 2017, it has announced the sale of $100 million in stock. The firm asserts that it desires to begin production in 76 weeks after the ElioCoin fundraising round. It hints vehicle won’t start rolling off the assembly line until 2019 at the first.
Image Source: Elio