In-Depth Analysis of the Telegram Bot Track (Part 1): How Do On-Chain Brokers Drive Mass Adoption of Web3?

Since the emergence of Telegram trading bots, the barriers to entry in trading have significantly decreased, and users can easily engage in on-chain transactions using their mobile devices. Serving as on-chain brokers, Telegram trading bots have driven the strong price increase of multiple project tokens, sparking a wave of enthusiasm for Telegram bots.

This series of articles will delve deep into the Telegram Bot track, consisting of two parts. The first part of the article is a summary of the track overview, and the second part is a summary of the targets.

Track Overview

Since the inception of Telegram trading bots, we have witnessed the strong rise in token prices of multiple projects. In particular, Unibot has experienced a rapid surge in price since July 2023. According to CoinGecko data, the token price of Unibot has increased from a low of $3.13 in May to a high of $200.45 in August, nearly a 100-fold growth, leading a wave of Telegram bot frenzy.

However, as the hype around Unibot gradually subsided, Banana Gun emerged. After announcing an airdrop in September, its token price rose from around $9 to a peak of $18. Although its upward momentum is not as strong as Unibot, Banana Gun still maintains a certain level of popularity within the Telegram trading bot ecosystem.

An emerging force worthy of attention is BonkBot based on the Solana chain. Its daily active users have reached approximately 35,700, which not only surpasses mature projects such as Banana Gun and Maestro, but also performs particularly well compared to the field of decentralized exchanges.

In the competitive field of DEX, BonkBot’s 7-day average daily user volume is second only to sushiswap and ahead of veteran projects such as Maverick Protocol and Trader Joe. This craze is undoubtedly due to the recent popularity of the Solana ecosystem, coupled with users’ enthusiastic trading of meme coins on Solana, which further promotes BonkBot’s trading activity.

Meanwhile, BTCBot.pro, as a Telegram Bot in the BTC ecosystem, has also been online for nearly a month. Due to the unique nature of the BTC ecosystem, BTCBot.pro offers users different functionalities compared to ETH and Solana-based Telegram Bots, making it worth exploring.

Looking at the world of Telegram trading bots, it’s clear that it’s not a flash-in-the-pan phenomenon. However, the landscape in this space is constantly changing, and this article aims to outline the macro situation of current Telegram trading bots and highlight some projects worth paying attention to.

According to data analysis, since BonkBot was launched, it has led other trading robots on the market in terms of trading frequency and number of users. Especially in terms of transaction frequency, BonkBot’s performance is significantly higher than Banana Gun and Maestro Bot, and its transaction frequency is approximately 10 times that of them.

This outstanding achievement is attributed to BonkBot’s efficient design on the Solana blockchain, which is known for its high TPS (transactions per second) and ability to support more frequent transaction processing. Additionally, with the recent rise of meme coins in the Solana ecosystem, BonkBot has solidified its dominant position in the Telegram trading bot market.

Drawing on the success of BonkBot, a similar simulated trading bot called Sol Trading Bot has also launched on Solana, and it has already caught up with projects like Banana Gun and Maestro Bot in terms of trading volume, and even surpassed them in terms of trading frequency and daily users.

As for Unibot, existing data indicates that its market advantage has weakened. However, it is worth noting that the project has started deploying on the Solana blockchain, which has slightly influenced its trading volume trend. Clearly, projects utilizing Solana as their infrastructure may be the key to unlocking the next wave of Telegram trading bot frenzy.

Although Solana Bot has shown outstanding performance, we should not overlook the excellent performance of Banana Gun prior to the Solana boom. It closely follows BonkBot in several key metrics.

Historical Development

With the booming development of the cryptocurrency industry, Telegram Bot, as an intelligent trading tool, is gaining increasing attention in the cryptocurrency community. As early as 2017, Telegram Bot already had the function of automatically replying to messages and executing user instructions.

With the rise of the cryptocurrency industry, Telegram has become the most commonly used instant messaging tool among cryptocurrency enthusiasts. Against this background, trading robots based on Telegram are gradually emerging. They can realize automated operations such as token exchange, copy trading, data analysis, automated airdrop trading, and asset cross-chain.

Market Structure

Telegram Trading Bots are automated systems within Telegram that assist users in executing trades on decentralized exchanges. Users interact with these bots through the messaging interface of the app.

Different Telegram trading bots offer unique features, but most come with common trading features, including stop-loss and take-profit orders, copy trading, and multi-wallet support.

These bots replace the user interface (UI) and user experience (UX) of Web3 wallets and DEX, simplifying the complex process of decentralized crypto trading.

These bots utilize advanced algorithms and infrastructure to conduct fast transactions and are often referred to as “Uniswap snipers”. They meet users’ needs for transaction efficiency and convenience. Although what all these robots have in common is fast trading speed, they all differ in their segmented functionality. For example, UniBot offers features like limit orders and mirror sniping, SwipeBot focuses on ease of use, and OxSniper has features like anti-MEV protection. The following are the main uses of trading robots:

• Token Trading: The trading robot is integrated with the Telegram platform, and users can easily obtain tokens by copying and pasting the contract address into the message box. Some bots provide real-time updates on profits and losses on trades and speed up token sales by enabling pre-approved trades. \

• Setting Take-Profit and Stop-Loss Orders: Users can use these Telegram Trading Bots to set stop-loss and take-profit orders, enabling automated trading based on preset parameters. This feature is particularly useful for trading new tokens that are not yet listed on CEX and carry higher risks.

• Rug-Pull and Honeypot Scams Monitoring: Some Telegram trading bots have anti-rugpull and anti-MEV features. If token developers plan to rugpull, the anti-rug feature can identify impending transactions in the mempool and quickly execute a sell order to prevent rugpull scams. The anti-MEV feature guides purchasing transactions through private relays to ensure that purchases are not broadcasted in the mempool, thus preventing MEV, specifically sandwich attacks.

In addition, the trading bot can detect malicious transactions that developers are about to perform. If such transactions cause the token to become untradeable, the token will be considered a honeypot scam. The bot will swiftly close positions to avoid falling into the scam.

• Copy trading: Users can automatically follow transactions of specific wallet addresses through specific Telegram bots. This type of robot acts as a bridge between the user’s account and the selected trader, executing trades based on the signals of the copy trader. However, it should be noted that copy trading involves liquidity risks. Insufficient market liquidity may make it difficult to execute transactions, thereby increasing transaction costs.

• Sniper: Some trading robots can perform liquidity sniping, method sniping and multi-wallet sniping. Liquidity sniping is a buy operation that is automatically executed when the bot detects an increase in liquidity. Method sniping automatically executes purchases based on the “method ID” of the developer’s pending transaction. Users can also use multiple wallets for sniping through Telegram trading bots.

Traders can create automated tasks through robots to achieve airdrop goals. Bots targeting airdrop mining often operate across multiple chains to identify promising airdrop opportunities. However, caution should be used when participating in unverified airdrops to prevent scams and fraud.

Technical Implementation Path

Telegram bot functionality has been around for several years, but recently there has been a lot of interest in integrating Telegram bots with Web3 technologies such as blockchain and smart contracts. Unibot is one of the leading platforms for developing Web3 Telegram bots, providing a set of tools and services to help developers create, manage, and organize bots that can interact with decentralized applications and blockchain networks.

With the rise of decentralized finance and non-fungible tokens, the Web3 Telegram bot ecosystem has become even more popular. These bots can be used for various purposes, such as automated trading, asset tracking and management, social features, and more. By using the Telegram bot API and Web3 technologies, these bots can integrate with blockchain networks and other Web3 applications, offering users more flexibility and powerful functionalities.

The Telegram bot ecosystem is primarily built on the Telegram bot API, which is a set of HTTP-based API endpoints that allow developers to interact with the Telegram system programmatically.

The Telegram Bot API is language-agnostic, meaning it can be used with any programming language that can make HTTP requests. Common languages for creating Telegram bots include Python, JavaScript (Node.js), and PHP, among others.

Source: Medium @Srikari Rallabandi

Telegram bots are essentially programs that interact with the Telegram system using the Telegram bot API. Bots can be programmed to respond to messages, commands, and inline requests. To create a bot, you need to register in the Telegram system, which will provide you with a unique token. This token is used to authenticate the bot’s identity within the system and send requests to the bot API.

In terms of infrastructure, the bot runs on servers, not the user’s device. This means they are always online and can respond to user messages instantly. The server can be a cloud server or a local machine, depending on the developer’s preference.

Growth Drivers

Popularization of Cryptocurrency Trading

Cryptocurrency trading is generally considered to have a common problem: the threshold for trading knowledge is high, making it difficult to popularize trading. Compared with stock trading, cryptocurrency trading requires more basic settings, such as creating a wallet and completing KYC and other procedures, which poses certain obstacles for the general public to invest in cryptocurrency. Secondly, even when using a centralized exchange, the user interface is relatively complex and not simple enough compared to Telegram Bot.

Since the emergence of Unibot, the project has aimed to simplify the transaction process, focusing on simplifying transaction operations to the greatest extent. All interactions are only completed through conversations with the robot, and providing a fast Uniswap lightning sniper to achieve rapid transactions and precise sniping. The convenience of Unibot is that users can trade through Telegram anytime and anywhere without relying on other trading platforms. This will go a long way toward popularizing cryptocurrency trading.

Recently, the transaction volume of Telegram bots has surged, which just proves the market demand for this type of trading method. Especially for tokens that are illiquid or not yet listed on exchanges, Telegram bots significantly increase their exposure. At the same time, this also adds more investment options for traders, forming a win-win situation.

Telegram Platform

As one of the most popular social media apps in the world, Telegram has over 55 million daily active users, providing a fertile ground for the development of Telegram Bots. With its wide recognition and user base, Telegram is planning to transform into a super-app similar to WeChat, supporting various mini-programs within its platform. This not only enhances its versatility but also paves the way for decentralized payments.

To realize this ambitious blueprint, Telegram is collaborating with leading technology and cryptocurrency companies, including the TON Foundation and Tencent Cloud, with the goal of expanding its global influence and accelerating the process of decentralization. This series of strategic moves highlights Telegram’s potential as a key super-application in the future of Web3.

Telegram Bot, built on such a powerful platform, will undoubtedly be a beneficiary and is expected to convert Telegram’s huge user base into a loyal user base of the bot, further strengthening its influence in digital transactions and cryptocurrency integration.

Risks

Asset Security Risks

When using Telegram bots for cryptocurrency trading, users need to be aware of the risks associated with asset security. These bots typically require the creation of a dedicated wallet or connection to an existing wallet. In both cases, the bots may gain access to the private keys, leading to security vulnerabilities.

Private Key Access Risk: These bots can access private keys, which raises security concerns. Private keys are like the master keys to a user’s digital wealth, and their exposure can have serious consequences, including theft and unauthorized transactions. Bot access to these keys significantly increases the risk of security vulnerabilities.

Self-custody challenges: By delegating wallet creation and private key management to bots, the fundamental principle of self-custody in cryptocurrency is undermined to some extent. Moving from personal control to reliance on automated systems can lead to a false sense of security, leaving users vulnerable to mismanagement or even malicious activity.

Risks of poor asset mismanagement and unauthorized access: Telegram bots are often designed to manage assets without direct user supervision, opening the door to potential mismanagement. Additionally, the lack of strong security protocols can lead to unauthorized access, whether through security flaws in the bot itself or through external threats.

To mitigate these risks, users are advised to exercise caution when using Telegram bots for cryptocurrency trading. This includes thoroughly researching the bot’s security features, avoiding storing large amounts of assets in wallets accessed by these bots, and regularly monitoring trading activity for any signs of unauthorized behavior.

While Telegram bots provide convenience and efficiency in trading, they also pose substantial risks to asset security. Users must remain vigilant and take proactive steps to protect their digital assets in this evolving space.

Risk of Lack of Code Audits

For Telegram bots, failure to conduct comprehensive and regular security code audits may increase the risk of exploited vulnerabilities. This lack of auditing results in a lack of transparency and supervision, putting users’ assets at risk. Take Unibot and Banana Gun as examples. According to Certik’s data, both projects have not undergone Certik’s code audit, so users need to bear the risks associated with smart contracts.

Since the project failed Certik’s code audit and KYC review, it received lower scores in terms of “code security” and “fundamental health.”

Banana Gun also has a previous example. In less than 3 hours after the token was launched, its currency price experienced violent fluctuations. The price plummeted from the highest peak of US$8.7 to only US$0.02, almost close to zero.

In response to this abnormal market performance, the Banana Gun team explained through an official announcement that there was a critical error in the token contract that the team failed to fix. They added that although the contract had been audited twice, the errors remained undetected. This incident also confirms the risks caused by failing to pass code review.

Unibot chose a less recognized third party to conduct the code audit and did not conduct a KYC review. This situation may affect the credibility and security of the project, as less well-known audit agencies may not be able to provide the same level of audit quality as more prominent agencies. At the same time, the lack of KYC audits also increases the risk of transactions with anonymous or opaque entities.

Fierce Competition

In the competitive ecosystem of Telegram Bots, the market entry barrier is relatively low, making it easy to be imitated and replicated, resulting in a high degree of homogeneity among projects. In such a competitive landscape, individual Bots may face the challenge of user attrition, making it crucial to build strong competitive barriers. This means that projects need to have unique advantages to prevent competitors from entering the market.

Taking Bonkbot as an example, its success in the realm of Solana meme coins is primarily due to its position as a market pioneer. However, user loyalty in this field is generally low, as they tend to choose services based on product performance and potential returns rather than brand loyalty. This means that users will quickly switch to other platforms once better trading conditions or more attractive opportunities arise. This is the key reason why platforms like Unibot or Maestro Bot have failed to maintain a leading position.

In conclusion, although the overall Telegram Bot field shows promising growth potential, it does not mean that every project can stand out in the competition. Therefore, investors should be aware of the potential investment risks of each project when venturing into this field, while also recognizing the unpredictability of this market.

Summary and Outlook

Intensifying Competition in the Solana Ecosystem’s Telegram Bot Market

Market saturation and leader formation: As competition among Telegram Bots in the Solana ecosystem becomes increasingly fierce, the participation of well-known projects including Unibot and Banana Gun has made the market more saturated. In such an environment, only a few projects can survive, which requires each project to develop a unique roadmap and value proposition.

Personalization and innovation: Projects must differentiate themselves through personalized services, technological innovation, or a better user experience to attract and retain users.

Cryptocurrency Market Entering a Bull Market

Impact of policy and market sentiment: Benefiting from positive policy news, the cryptocurrency market is gradually entering a bull market. This will attract more retail investors to enter the market, which will help the popularity of tools such as Telegram Bot.

Market positioning and popularity: Given that Telegram Bots aim to simplify the cryptocurrency trading process, their appeal to regular Web 2 users will increase as retail investors enter the market.

Ordinals Script Market and the Development of Bitcoin Telegram Bots

Positive trends in the Bitcoin market:The Ordinals market is benefiting from positive Bitcoin movements and news and is expected to grow further.

Early markets and opportunities: As the Telegram Bot market for Bitcoin is still in its early stages, remain optimistic about future developments. This offers a huge opportunity, especially for projects that can quickly adapt to market needs and innovate their services.

Overall, while the market is highly competitive, it also means there are plenty of opportunities. It is important for the Telegram Bot project to identify and capitalize on these trends while continuing to innovate and improve to remain competitive and attractive in the market.

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