TeslaCoin: A Misunderstood Digital Currency with Little to Show

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First launched in 2014, TeslaCoin (TES) entered the digital asset market promising a new approach to cryptocurrency, claiming efficiency, security, and ease of use. Yet more than a decade later, it’s nearly invisible in crypto space. Despite a name that has led many to assume a link to Tesla, Inc. or CEO Elon Musk, the reality is far different: TeslaCoin is entirely unrelated to the electric vehicle manufacturer or its ventures into blockchain. Today, with no measurable trading volume, unclear backing, and little public engagement, the coin appears to be more of a cautionary tale than a serious investment opportunity.

Originally, TeslaCoin was designed as a hybrid cryptocurrency, combining Proof-of-Work (PoW) and Proof-of-Stake (PoS) systems. It eventually transitioned fully to PoS, allowing holders to earn 7% annual rewards by staking their TES coins. With a short block time of 30 seconds and a fixed total supply of 100 million TES, it positioned itself as an energy-efficient alternative to early mining-heavy models. The idea was sound in theory, but the execution never gained enough traction to break into the broader market.

TeslaCoin’s promotional materials have often overstated its capabilities, describing it as an “advanced” platform with artificial intelligence (AI) trading tools and top-tier encryption, including Advanced Encryption Standard (AES) 256-bit technology. It also claims compatibility with hardware wallets like Ledger, Trezor, and Trust Wallet. While this may appeal to casual investors unfamiliar with the crypto world, the evidence supporting these claims is thin. In reality, TeslaCoin hasn’t been listed on major exchanges like Coinbase or Bitget for meaningful trading. As of July 2025, its listed value is $0.00 with zero trading activity. Some platforms even return a price of “NaN” (not a number), reflecting either system errors or complete inactivity.

Despite these red flags, projections about TeslaCoin’s long-term growth continue to circulate online, many of which are based on unreliable or outdated data. A speculative 38% increase by 2031 has been mentioned on various cryptocurrency forecast websites, but without trading volume, community support, or developer updates, these predictions seem more hopeful than realistic.

Public engagement with the coin is virtually non-existent. At its peak in 2022, it ranked a dismal #2,950 in online mentions on Coinbase analytics, with most commentary marked as neutral. Reddit, a key platform for grassroots cryptocurrency movements, shows just one post and one reply related to TeslaCoin, both of which received downvotes. The coin lacks an active community, a critical component of success in decentralized projects.

Perhaps the most concerning issue surrounding TeslaCoin is its involvement in fraudulent schemes. In 2022, cybersecurity firm Avast identified a scam campaign that misused the TeslaCoin name to lure victims through Facebook ads and fake news articles. These scams promised unrealistic profits, such as earning $600 a day from a $100 investment, and tricked users into handing over money. Avast reported blocking more than 10,000 attempted scams, warning users to avoid offers that promise fast, guaranteed returns.

Adding to the confusion is the existence of Tesla Coin (TSLA), a completely separate token built on the Ethereum network. It claims to offer payment and data services through blockchain, but like TeslaCoin, it has negligible trading activity and little to no verifiable public backing. Its token supply sits at 11 billion, with a last known price around $0.0148 and zero market momentum.Meanwhile, actual developments involving Tesla, Inc. have significantly more substance. In late 2024, the automaker reportedly shifted $765 million in Bitcoin (BTC) to anonymous wallets. It also accepts Dogecoin (DOGE) for select merchandise, aligning with CEO Elon Musk’s known interest in cryptocurrency. These are tangible events with measurable impact, unlike TeslaCoin, which continues to ride on mistaken identity without delivering on its promises