What is Tessla Coin (TSLA)?
Cryptocurrency has seen a lot of new projects pop up. There are literally tens of thousands, possibly hundreds of thousands, of projects that have launched on various blockchains.
Most of these projects have been complete failures. One project that we will highlight that failed is called Tessla Coin (TSLA). There’s not been information about the project because it failed so badly that the developers shutdown the website, but there’s enough information to learn some lessons.
What was Tessla Coin?
Tessla Coin was the token for the TesslaPay project on Ethereum. The token is called a coin, but it’s actually an ERC-20 token on the Ethereum blockchain.
The payment gateway was supposed to make it easier to pay with cryptocurrency. Of course, this never happened and the founders basically drained the liquidity pool and ran off with everyone’s money before launching anything.
There were a lot of problems with Tessla Coin, which made it incredibly obvious that the project was some sort of scam. The next section will outline all the problems with Tessla Coin.
The Many Problems with Tessla Coin
There were so many problems with Tessla Coin. It’s actually surprising that this project became as big as it did. Anyway, here’s a list of some of the major problems with this project.
The first issue with this project is that it has anonymous founders. This is always a red flag for projects like this because it’s just so easy for anonymous founders to disappear with everyone’s money.
That’s not to say that every project with public founders is legitimate. But most people do not want to ruin their reputation by being associated with a scam project. It also increases the chances of going to jail if you choose to be a public founder of a scam project.
What’s The Point of The Project?
The next issue we have with Tessla Coin is the purpose of this project. The stated purpose was to create a crypto payment gateway.
That’s great and all, but who is going to use some low market cap Ethereum token for payment?
It’s already difficult enough to get people to accept Bitcoin – no one is going to accept some token that they have never heard of that has anonymous founders. And the low market cap just makes it more difficult to sell.
Lots of projects claim that they will become a payment gateway. Any project that claims this is always a scam unless it’s one of the major projects like Ripple or Stellar.
They Spelled Tesla Wrong
Another issue we have with this project is that they spelled Tesla wrong. It’s spelled “Tesla” not “Tessla.”
We suspect, but have no way of knowing, that this was done to trick people into believing that the project is related to the car company Tesla. Tessla Coin uses the same ticker (TSLA) as Elon Musk’s Tesla.
This type of branding is a major red flag. It shows that the founders do not have any interest in building up their own brand, so they just piggyback off an already established brand. Alternatively, it shows that the founders are so unintelligent that they spelled Tesla wrong when naming their project.
Neither of those reasons should give investors much faith in the project.
It’s a Token not a Coin
Finally, the project appears to have mislabeled itself as a coin rather than a token. A coin is the native currency of a blockchain whereas a token is built on top of a blockchain. Bitcoin and Ether are tokens; Tether is a token.
This is not complicated stuff and something we would expect those familiar with blockchain technology to understand.
Is Tessla Coin (TSLA) a Good Investment?
No, it’s not a good investment because it’s a dead project. You will literally never make your money back by investing in this project.
It’s important to note that the abbreviation for Tessla Coin is TSLA, which is the same as Tesla, Inc. A lot of the popularity of this token on Twitter can be attributed to them sharing the same abbreviation.
That covers it for all you need to know about Tessla Coin – it’s a dead project that had almost no hope of ever becoming anything. The entire strategy of the project appears to have been tricking people into thinking that it had some sort of association with Tesla, Inc.