What is a Tesla token, and how much is it worth?
What is a Tesla token, and how much is it worth?
Have you ever wondered what the Tesla token is and why many crypto enthusiasts are interested? What is the hype about this type of token, and what makes it special compared to others?
Primarily, Tesla has made a serious move in the rapidly evolving crypto space over the last couple of months. In February, the automaker invested an incredible amount of $1.5 billion in Bitcoin and recently accepted this cryptocurrency as payment for its electric cars.
This contributed to boosting Bitcoin’s price and putting it in an even bigger spotlight in the world of cryptocurrencies. But what does it all have to do with the Tesla token? Let’s get to know more about the new project that this corporation has planned.
Tesla Launching Tradable Stock Tokens
Tesla’s stock, known as TSLA, will be the first to trade as a token, i.e., Tesla token, on the Binance exchange. Thus, all users are able to purchase fractional shares using cryptocurrency. The crypto community is excited about this new way of investing in the electric automaker.
Thus, Tesla gets a lot of love back from these crypto enthusiasts. One of the largest crypto exchanges, Binance, has announced the launch of its Tradable Stock Tokens that are zero-commissioned.
They are starting with the Tessla token linked to Tesla’s stock. According to Tesla, the new stock product is described as a zero-commission digital token that is fully backed by a depository portfolio of underlying securities. These securities refer to all outstanding Binance Stock Tokens.
Besides, all holders of these stock tokens qualify for potential dividends and other economic returns on the underlying assets.
What is Tesla Token exactly?
Those still wondering what a Tesla token is and whether it is real should understand that it’s Tesla Tokenized Stock Token, pegged to Tesla Stock Price. Same with ETH, which is for Ethereum, or BTC for Bitcoin, the Tessla token has its ticket symbol known as “TSLA. ”
The Tesla token, or Tessla coin, is the first Binance Stock token listed on the exchange with the trading pair TSLA/BUSD. One of the Tesla token’s main advantages is that investors can acquire fractional shares of Tesla’s stock token.
If you’re planning on trading Tesla tokens, it is available at all times, similar to trading in crypto 24×7. Available on FTX, the Tessla token tracks Tesla’s stock price (TSLA).
The most popular stock on trading platforms
It’s essential to understand that Binance didn’t explain why it decided to launch the platform with Tesla’s stock first. However, the stock of the automaker Tesla usually ranks as the most popular stock on trading platforms for individual investors.
In recent years, Tesla’s stock has increased immensely, and nowadays, it’s extremely hard for smaller investors to purchase the stock. A couple of years ago, Tesla did a five-for-one stock split to make its stock cheaper. However, it surged again, trading at around $700 per single share.
Tesla Token availability
The residents of the USA cannot avail themselves of FTX services. Other nations that, according to FTX, provide services include North Korea and Cuba. The crypto exchange claims services are partially restricted in various jurisdictions such as India, Hong Kong, and Canada.
Keep in mind that there’s a declaration that users based in the Canadian province of Ontario cannot use FTX services. The conclusion is that the availability of Tesla Token that trades on FTX solely depends on the user’s location.
Tesla Token Price
Tesla coin price is linked to BUSD. It’s a cryptocurrency attached to the value of the US Dollar. According to Tesla, the first Binance Stock Token will be listed as Tesla Inc or TSLA token. TSLA/BUSD pair trading began on the 12th of April in 2021. All users are able to trade fractional Tesla stock on the official Binance website.
For those wondering about the Tesla token presale and its current price, at the time of writing, Tesla tokenized stock was trading at approximately 750 American dollars. In the past 24 hours, this tokenized stock had registered over three percent gain.
Once again, according to FTX, Tesla Tokens are backed by shares of Tesla that maintains with an independent brokerage firm. Holders of Tessla tokens are able to redeem their holdings against the underlying Tesla stocks.
Statistics of TSLA on the Binance
- TSLA price: $ 1.2908101 per (TSLA / USD) at the moment of writing
- The 24-hour trading volume is USD 88,604.00
- Tesla Coin is -0.17% in the last 24 hours.
- The circulating supply is USD 0.
- Total supply: 11,000,000,000
Is Tesla Token considered to be 100% safe?
Another concern regarding the TSLA token, i.e., the Tessla token and the potential investors, is the question of its safety. According to FTX, which claims to maintain custody of Tesla stock to back the Tesla token listed on it. Quite recently, when the stablecoin, TeraUSD (UST), fell in value, many crypto enthusiasts worried about all the available stablecoins.
Remember that stablecoins are usually pegged to fixed assets such as fiat currency or gold. Considering that measure, the value of UST that’s pegged to the US dollar should, without exception, constantly be $1. UST traded below US$0.2 as of writing, reflecting all the vulnerabilities of the cryptocurrency market at the moment.
The way the Terra ecosystem maintains its reserves to support the value of UST has caused some trouble, and Tesla tokens may not be completely immune to such risks. Because of the UST stablecoin crash episode, remember that caution is essential in the crypto-verse.
Risk of trading cryptocurrencies
Trading Tesla tokens, just as any other tokens in the crypto world, involves high risks. You may expect to lose some or all of your invested amount, and it’s not considered suitable for all investors. Cryptocurrency prices are extremely volatile. Thus, they’re able to be influenced by political, regulatory, or financial events that are external factors.
However, all laws currently apply to crypto products, and how a particular crypto product is regulated is prone to change. Experts advise investors and traders to be fully aware of all the risks and costs associated with trading in the financial markets before deciding to trade financial instruments or cryptocurrencies.
It is essential to carefully consider all investment objectives, level of experience, and risk appetite. Good professional advice is always welcome.
What is Tesla corporation?
Tesla Inc. refers to an American multinational clean energy and automotive company headquartered in Austin, Texas. It was named after the famous Serbian inventor and scientist Nikola Tesla, who is best known for the invention of the alternating current. Tesla corporation manufactures and designs:
- Electric vehicles such as electric cars and trucks
- Battery energy storage such as solar roof tiles and solar panels
- Related products and services
It is known as one of the most valuable companies in the world and the world’s most valuable and popular automaker, with a market cap of more than $760 billion US dollars. Tesla is also famous for its worldwide sales of plug-in electric vehicles and battery electric vehicles, capturing 2020 23% of the battery-electric market and 16% of the plug-in market.
The Tesla company is also developing and installing a photovoltaic system in America through its subsidiary Tesla Energy. Regarding Tesla energy, it’s one of the world’s largest battery energy storage systems suppliers. It has 3.99 gigawatt-hours (GWh) installed in 2021.
How can you buy Tesla stock?
If you are actively thinking about entering the stock market and buying a Tesla stock, you should follow these steps:
- Use a comparison table to get help finding a platform that best fits you. It’s essential to compare share trading platforms before deciding on one.
- Open your brokerage account. You are able to do so by completing an application with your details.
- Fund your account after you have confirmed your payment details
- Do good research on the stock and find the stock by ticker symbol or name TSLA. Research it before making your decision on whether it’s a good investment for you or not.
- Buy it sooner or later. Choose what your desired number of shares with a market order is. Or you could utilize a limit order to delay the purchase before the stock reaches the desired price.
- Make sure to check in on your investment and optimize your own portfolio by tracking your stock.
Why invest in the stock market?
Nowadays, investing in the stock market is a great way for investors to make serious profits over time. Stocks offer investors a great potential for growth, i.e., capital appreciation over the long haul. All investors who are interested in sticking with stocks over a long period of time, for example, ten years or more, are rewarded with positive and strong returns.
However, don’t forget that stock prices move down exactly as well as up.
Key Takeaways
- Tesla token, i.e., Tessla token or TSLA, represents a Tesla Tokenized Stock Token which is pegged to Tesla Stock Price.
- The current Tesla token price is $1.280607 per TSLA.
- Tesla usually ranks as the most popular stock on trading platforms for individual investors.
- Tesla tokens may not be completely immune to risks.
- The availability of Tesla Token trades on FTX solely depends on the user’s location.
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