The Recent Buzz Around Various "Crypto" Bots: A Fleeting Trend or a New Investment Frontier?

Since July of this year, the price of UNIBOT has been rising rapidly. According to data from CoinGecko, UNIBOT’s price surged from its lowest of $2.46 in May to its peak of $236.98 in August, a nearly 100-fold increase, leading a trend in Telegram bots. Currently, the price of UNIBOT has dropped back to around $100, and the prices of other assets have also retreated significantly from their highs. Whether various bot projects are just a flash in the pan or will evolve into a new competitive field for future bursts remains to be seen. This article will summarize by dissecting three representative types of projects.

I. What are “Crypto”bots?

In reality, Telegram bots are not a new concept. They are small applications that run within Telegram. Users can interact with these bots via flexible interfaces that support nearly any type of task or service, from communication to execution. For example, Telegram bots can replace an entire website, receive payments, create custom tools, design games, and establish social networks.

Source: Official Telegram (*The displayed image is based on a Telegram-developed food ordering mini-program)

Thanks to Telegram’s open-source framework, ever since the birth of the crypto market, various bots have been developed based on Telegram. Examples include news bots that push important messages, and bots that alert users to large on-chain address changes or token metric fluctuations. In the past, these bots mostly served users for free or via subscription fees.

Currently, besides those based on Telegram, there are also many bots designed for platforms like Discord and Twitter or directly on web-based bot dApps. These bots specifically address the needs of the crypto industry in an automated manner and integrate features of the crypto market, such as specialized token economics. Hence, with the recent rapid development of bots, the author of this article prefers to temporarily refer to them as “crypto”bots. In this article, we categorize “crypto”bots into three main types: Trading bots, Niche Tool bots (*excluding trading and addressing specific issues), and GPT & AI bots. We will delve into one representative project from each category.

II. Trading Bots – Unibot

Unibot is a trading tool robot based on Telegram. Users can issue trading commands via conversations with the bot on Telegram to complete on-chain token trades on Uniswap, such as token trades, limit orders, copy trades, new token sniping, and private trades. According to official information, this bot trades at six times the speed of Uniswap. Moreover, Unibot has introduced an attractive revenue-sharing mechanism, driving a hundred-fold price increase for its token. Similar projects in this category include Maestro (currently no token), Banana Gun, Wagie Bot, Boltbot, NitroBot, 0xSniper, Dexbot, and more.

1.Core Features:

（1）Main Menu and Basic Trading:

When using for the first time, visit Unibot’s Telegram channel. After clicking “start,” Unibot will generate three wallets and present the main menu. Send at least 0.01 ETH to the wallet address to begin trading. The main menu lists all of Unibot’s features, which can be accessed via clicks and chats.

Source：unibot

（2）Limit Orders:

Implement limit orders via chat dialogue. Define token contract address, purchase quantity, wallet choice, order duration, and limit price percentage to deploy.

Source: Unibot Official

（3）Copy Trading:

Choose professional traders you trust and set up auto copy trading to mimic their trades. First, select the wallet you want to enable for copy trading. Second, set the maximum ETH purchase amount per copy trade. Third, add or remove addresses by inputting one or multiple ETH addresses separated by commas.

Source: Unibot Official

（4）New Token Sniping:

This feature allows the bot to auto-purchase new tokens for you upon their official release. First, select the wallet you want to enable for Method Sniper. Second, input the address of the token you want to snipe. Third, set the maximum ETH amount and the highest Gas price you’re willing to pay for a single snipe. Fourth, set the related functions for token actions, such as opening trades, adding liquidity, initiating trades, etc. Fifth, specify the maximum number of tokens you want to buy and the number of blocks to wait before purchase. Lastly, add it to the snipe list to activate. Unibot also provides an ERC-20 token deployment scanner (*unibotscanner) to quickly find and view new tokens.

Source: Unibot Official

（5）Protected Selling:

Enable the Fail Guard mechanism to prevent gas fee losses. Once Fail Guard is activated, a simulation is run on the transaction before broadcasting it to the network to ensure no execution errors. The purpose of Fail Guard is to avoid wasting Gas on transactions expected to fail. This setting may introduce some delay to your transactions as simulation must be completed before execution.

（6）Private Transactions:

Activate private node transactions to keep them hidden on etherscan until completion, preventing “sandwich attacks.” Sandwich attacks are a popular front-running technique in DeFi. To execute a “sandwich” trade, attackers identify a pending transaction of a victim and try to sandwich the victim’s trade with trades of their own. For example, if an attacker sees a potential victim’s pending trade where asset X is being traded for asset Y, the attacker will purchase asset Y before the victim, anticipating that the victim’s trade will raise the asset’s price. This allows the attacker to buy asset Y at a lower price, force the victim to buy at a higher price, and then sell the asset at that higher price. Private node transactions can prevent such attacks.

Source: Unibot Official

2.Token Economics

The project had a fair launch, with 100% of the token supply added to liquidity at inception. The total supply is 1 million, fully circulating and non-dilutive.

Why buy UNIBOT? Owning UNIBOT offers a range of benefits. For instance, using the product can provide trading discounts, and users can gain profits from the entire platform and referrals. Because of these advantages, UNIBOT users and investors are motivated to buy and hold as much UNIBOT as possible. This action can boost the platform’s total revenue, elevating the coin’s price and attracting more participants.

Source: LD Capital

How does UNIBOT’s profit mechanism work? There are primarily two revenue streams: fees from bot product usage and taxes from token trading. The fee distribution provides a higher percentage to token holders, attributing intrinsic value to the tokens and promoting token retention. A 25% commission through the referral mechanism also encourages token holders to invite more users to the Unibot platform.

Source: LD Capital

One of the main reasons for the project’s explosion in popularity is UNIBOT’s highly attractive token economic design. Token holders seek profits from UNIBOT’s revenue-sharing mechanism and token appreciation, the strategy being to hold more coins and recommend more users. For the project to sustain this momentum, they must continually innovate and operate their products, ensuring the platform remains in active use and attracts new users. Otherwise, it risks becoming a mere meme coin. Additionally, they need substantial market-making capabilities and marketing prowess to maintain appealing token trading volumes and prices.

3.Performance Data

The total market cap for Crypto bots is approximately $200 million, with UNIBOT’s MC and FDV (*fully circulating) at $100 million, accounting for 50% of the entire market, making it a bellwether in the sector’s development. The top ten addresses hold about 18% of the total supply, indicating a wide distribution. The coin’s price, which started at a low of $2.46 in May, skyrocketed to a high of $236.98 in August — a nearly 100-fold increase — driving the Telegram bots trend.

Source: CoinGecko

Regarding revenue models, the highest daily revenue was recorded on July 23rd, reaching 337.54ETH. After a decline from this peak, it recently rebounded to a daily revenue range of 100–200ETH, with a total revenue of 7649ETH. The EPS stands at $42.51. The recent P/E ratio dropped from above 3 to 1.85, increasing investment value. In terms of revenue composition, Taxfees account for 79.93%, while Botfees make up 20.07%. The overall proportion is still on the lower side, offering room for further optimization.

Source: Dune

UNIBOT has a cumulative trading volume of over $290 million and 428,000 transactions. Its average daily trading volume is around $4 million, and it’s currently performing well. There are 143,500 bot users, with 1,808 being active in the last seven days. Daily user count stands at around 1,000, with about 100 new users joining daily. As a leading project in the bots sector, its daily user count lags behind other leading projects in different sectors. However, a significant and steady increase might push the coin’s price past its previous highs.

Source: Dune

4. Project Features

（1）Pioneering attractive revenue mechanisms, a core driver for the surge in token price: Unibot wasn’t the earliest to offer automated trading bot functionality, nor did it have the largest user base. Maestro previously had the highest number of users among trading bots. However, Unibot’s token economy design was the most effective. It attracted a vast number of users to hold and share profits through a Ponzi-like model and invite more participants. This alignment and distribution of interests were the core drivers behind the rapid token price increase.

（2）Providing core functions that genuinely need bots for solutions, enhancing the efficiency of DEX to some extent: Functions like copy trading and new coin sniping introduced by Unibot genuinely require automation to be efficiently executed. In the past, these functionalities were mainly carried out by professional quantitative traders. With bots like Unibot, individuals can also achieve them, providing certain advantages of using DEX over CEX.

（3）Being a leading project, there’s room for improvement in terms of security and user accessibility: The common concern among market investors regarding trading bots is security since private keys are automatically invoked by the bot. Demonstrating security and decentralization to users is crucial for these bots when large funds are involved. Furthermore, many bots are based on high-traffic platforms like Telegram and Discord. While one might think it would be easy to acquire users outside the existing crypto market, the current trading bot products rely on simplistic clicks, inputs, and conversations for deploying features. A clear trading logic and experience are needed to get started quickly. The current bots enhance the experiences for experts rather than simplifying it for beginners.

（4）Significant revenue, clear first-mover advantage, and potential for sustainable business models: Current trading bots are starting to incorporate token economy mechanisms similar to UNIBOT, which can lead to rapid token price spirals. However, for long-term sustainability, a combination of product capability, market-making ability, and marketing and operational prowess is essential. At present, leading projects like Unibot don’t have high user counts, activity metrics, or bot fee percentages; many other projects even have colder statistics. Owing to its first-mover advantage and high revenue, Unibot has a better chance to continually strengthen in products and operations for long-term growth. This is evident in their recent release, Unibot X, which offers a more intuitive front-end interface and improved user experience.

III. Specialized Tool - Lootbot

Lootbot specializes in facilitating potential airdrop interactions. Operated on the Telegram platform, it serves as a simplified frontend for several blockchains. It deploys and automates on-chain interactions through conversation, saving users significant time and energy on repetitive tasks. Moreover, it has an anti-sybil mechanism to efficiently realize airdrop objectives. Presently, it primarily supports real-time interactions with Zksync and Linea. Future expansions will include support for Layerzero, Scoll, Base, among others. Possible interactions include bridging, swapping, and NFT minting.

Source: Lootbot Official

Other specialized tools bots include Collab.Land (Community Management), Bridge Bot (Cross-chain), WallyBot (Wallet Analysis), NeoBot (Crypto Analysis and Tracking), and TokenBot (Community Trading Tools).

1.Core Features

（1）Wallet Deployment & Network Selection:

Firstly, up to 10 wallets can be created for airdrop task interactions. After wallet creation, it’s recommended to provide at least 0.1ETH in funds for each wallet on the Ethereum mainnet (recommended transferred from CEX to avoid sybil detection). Lastly, funds can be bridged from the Ethereum mainnet to the selected chain to start looting.

Source: Lootbot Official

（2）Automated Airdrops:

Post-looting, task interactions are automated by the bot, conserving user time and effort on repetitive tasks. Typically, airdrop tasks are triggered weekly. Lootbot chooses the least costly time for airdrop execution. Airdrop task suggestions come from Lootbot advisors, and the team decides which tasks and routes to approve. Post-loot, users can view interaction data of the respective wallets.

Source: Lootbot Official

（3）Integrated Trading:

Beyond looting, Lootbot also offers trading functionalities. All ERC-20 tokens can be traded directly on Lootbot via Telegram. Distinctly, a maximum of three trading wallets can be created.

（4）Anti-Sybil Detection:

To fend off sybil attacks and represent genuine on-chain interactions, different planned routes are devised. This maximizes the chances of qualifying for airdrops. Lootbot employs strategies like randomization, concealing on-chain activities, hiding fund directions, and auto-mixing funds on CEX to avoid being identified as a sybil.

2.Roadmap

Lootbot is relatively nascent, having fundraised and initiated research in Q2 this year. It launched its official version and the LOOT token in Q3. This year, Lootbot will integrate more chains and protocols, automating more tasks, and intensify its market outreach.

Source: Lootbot Official

3.Tokenomics

LOOT has a total supply of 10 million tokens. 50% were sold to seed investors, 40% for adding liquidity, 5% allocated to the team, and 5% for CEX listing. The team’s portion has a TGE rate of 0, with a cliff unlock after 6 months and a linear unlock after 9 months. For seed investors, the TGE rate is 33%, with linear unlocking after 1 month.

Source: Lootbot Official

Why use and hold LOOT? Similar to UNIBOT, holding LOOT entitles holders to subscription discounts and a share in the revenue mechanism, profiting from others’ product payments.

Source: LD Capital

How does LOOT’s revenue mechanism work? LOOT’s revenue comes in two parts: Lootbot’s monthly subscription fee and the LOOT token transaction tax. From the subscription fee, 75% is allocated as dividends to token holders. Six months post-product launch, 2% of the transaction tax starts contributing to dividend distribution. Lootbot introduced the concept of “Epoch Rewards”. Prepared dividends accumulate into Epoch Rewards: 33% is allocated to holders of only LOOT and 66.7% to those holding both LOOT and XLOOT. Not all epoch revenues get distributed in one epoch (24 hours). They are successively allocated over subsequent epochs. As per the project team, this method aims for a more stable and consistent reward distribution, minimizing the impact of fluctuations when sharing income in single instances.

Source：LD Capital

The current circulating supply of LOOT tokens is 8.7 million, accounting for 87% of the total supply. The market capitalization (MC) stands at 3.48 million, with a fully diluted valuation (FDV) of 4 million. The all-time low (ATL) was recorded on July 17th at $0.19, while the all-time high (ATH) was on July 20th at $1.3. The top ten wallet addresses hold approximately 36% of the total supply.

Source：coingecko

4.Project Features

(1) It introduces a similar profit mechanism to Unibot, but with different sources of income and distribution methods. Its price drive is weaker than UNIBOT’s: Like Unibot, the income is derived from service fees and token transaction taxes. However, while Unibot’s service fees are commissions from every transaction, ensuring immediate generation with each trade; Lootbot’s service fees come from subscription charges. Free version users don’t pay subscription fees; instead, they compensate with a portion of future airdrops, an income that’s long-term and uncertain. Paid users pay monthly, making the frequency and timing relatively weaker. Furthermore, the profit distribution requires linear allocation across multiple epochs, stretching the income’s time dimension. This may hinder rapid price appreciation compared to UNIBOT. However, due to differences in bot products and operations, Lootbot’s distribution method might be more suitable for itself in the long run.

(2) Airdrops greatly benefit from bot tools. Lootbot has entered the niche of airdrop tools and has become a leading project in this space: There are numerous bots for trading and DeFi types, but very few airdrop bots for individual users. Airdrop tasks are mostly highly mechanical. Without bots, after charting out an airdrop route once, users would need to spend a lot of time and effort to constantly repeat the process, with limited parallel capabilities. The future returns are highly uncertain. Bots provided for individual users can significantly address the needs of those trying to maximize personal gains from these airdrops.

GPT & AI Category - ChainGPT

ChainGPT is an advanced artificial intelligence model and tool specifically designed for blockchain technology and crypto-related topics. Its unique features include: blockchain and cryptocurrency information, no-code smart contract builder, smart contract auditor, AI-generated NFTs, ChainGPT (a first-layer blockchain) virtual machine, and more. Furthermore, ChainGPT’s SDK and API services can be integrated into existing applications.

Source: ChainGPT official website

Others in this category include All In (an AI trading tool), Image Generation AI (for AI-generated NFTs), NexAI (a suite of AI tools), BlackSmith (AI analysis), and TrackerPepeBot (AI analysis and contract security checks).

1.Core Features

（1）ChainGPT Chatbot: An interactive AI assistant that addresses blockchain technology and cryptocurrency issues through dialogue. Examples include no-code smart contract programming, debugging, market analysis, guidance, trading, and more. Suitable for individuals, developers, and businesses in the crypto market. Accessible across multiple platforms like Telegram, Discord, and the Web.

（2）AI-Driven News: Offers AI-driven news services that scan the internet every 60 minutes and auto-generate news articles in the blockchain and cryptocurrency domains. The service aims to provide users with the most recent and accurate information about the industry’s latest trends and developments.

（3）Smart Contract Builder and Auditor: ChainGPT simplifies the creation and auditing of smart contracts, making it user-friendly for those without coding experience. Users can generate contracts by describing desired features, or they can quickly review existing contracts by pasting the code into ChainGPT.

（4）AI-Generated NFTs: Uses AI algorithms to create NFTs based on user prompts. Suitable for various applications, such as digital art, in-game items, and digital collectibles. Within 30-60 seconds, anyone can deploy their NFT on the blockchain.

（5）ChainGPT Pad: A decentralized fundraising platform for incubating crypto projects that facilitates Initial DEX Offerings (IDO). Community members holding CGPT tokens can have priority participation in IDOs, receive airdrops, and gain access to early-stage projects, among other benefits.

（6）ChainGPT (First Layer Blockchain) Virtual Machine (In Development): ChainGPT’s virtual machine offers a unique combination of EVM compatibility and on-chain AI. It aims to support the development of decentralized AI applications on the blockchain.

Additionally, features like SDK and API access, blockchain analytics, AI trading, and AI security extensions are available for testing through permission requests.

2.Development and Roadmap

The ChainGPT team was founded in 2022, composed of experienced developers, blockchain engineers, and artificial intelligence engineers. ChainGPT’s CEO and founder is Ilan Rakhmanov, with the award-winning blockchain and AI engineer Dr. Adnan Tariq leading the development team. The team is engaged in planning and designing complex AI models, showcasing their AI research to large tech enterprises and entrepreneurs. In 2022, the group created a chatbot based on ChainGPT and published a research paper (v1.0 white paper). On August 25, 2023, ChainGPT announced that it had received a $350,000 grant from Google, along with support from Google Cloud resources. These resources will be used for processing and enhancing the ChainGPT AI model. ChainGPT claims to have received investments from multiple parties, including private investors, venture capital firms, and strategic partners. However, detailed information about the investors backing this project has not been made public yet.

Source: ChainGPT

In the first three quarters of 2023, ChainGPT sequentially released the Beta and official versions of the ChainGPT chatbot, the DevAssist browser extension, the Stake & Farming DApp, ChainGPT News, iOS and Android chatbot apps, Telegram/Discord/Slack AI bots, and the CGPT token.

For the fourth quarter of 2023, improvements will continue on the artificial intelligence model along with added functionalities. This includes the ChainGPT AI trading assistant, ChainGPT iOS and Android app versions with built-in CGPT wallets, and upgrades to the AI NFT generator.

Source: Official ChainGPT

In 2024, the ChainGPT team will shift their focus towards constructing and releasing the ChainGPT testnet and mainnet, crafting a level one and level two network suitable for AI smart contracts and models.

Source: Official ChainGPT

3.Tokenomics

The total supply for the CGPT token is 1 billion. The allocation ratio is as follows: Private Sale A - 11.4%; Private Sale B - 4.5%; Public - 9%; Liquidity - 20%; Team - 9%; Development - 4%; Advisory - 3%; DAO - 9%; Reserve - 9.85%; Marketing - 9%; KOL - 6.25%; Liquidity Mining - 5%. The current live supply stands at 129,024,329, with a release token ratio of 12.9% (including LP).

The CGPT token primarily has four use cases:

（1）Consumption for Specific Functions：Access to the ChainGPT AI model. This advanced AI model is specifically designed for the cryptocurrency and blockchain sectors, assisting users in contract writing, concept clarification, answering questions, and market analysis.

（2）Burn Mechanism: CGPT incorporates a burn mechanism that automatically consumes half of every fee or income generated by ChainGPT tools and utilities. This reduces the overall supply of CGPT, enhancing its scarcity. To date, 1,294,904 CGPT (approximately 0.12%) have been burned.

（3）Staking:Staking allows token holders to lock their tokens in return for rewards or certain benefits within the ecosystem. For ChainGPT, staking gives token holders priority access to the AI model and its services. They can also gain governance rights in the Dao and elevate their member rank in the ChainGPT Pad (Bronze, Silver, Gold, Diamond), further enhancing their participation privileges in the Launchpad.

（4）Liquidity Provision: Token holders can earn rewards by providing liquidity to the ecosystem. In the case of ChainGPT, holders can offer liquidity to the CGPT token in decentralized exchanges and earn rewards in CGPT tokens.

Currently, CGPT’s market capitalization stands at $6.52 million, with an FDV of $50.54 million. Since its launch in April this year, its price rose significantly but gradually fell to a new low. The all-time high (ATH) was $0.297 on April 29, and the all-time low (ATL) was $0.0492 on September 3.

Source: CoinGecko

4.Project Features:

（1）Integration of Bots with AI: ChainGPT combines bots with AI technology, providing several efficient tools. For instance, through the Chaingpt chatbot, users can address blockchain and cryptocurrency issues. With the smart contract generator and auditor, users can produce and audit required smart contracts without much coding experience. With the NFT AI generator, users can create and deploy their NFTs on the blockchain in 30-60 seconds.

（2）Comprehensive Product Matrix: ChainGPT has developed an array of AI tools suited for the crypto space, potentially forming a closed loop. Developers can use ChainGPT for development, launch completed projects on the ChainGPT Pad, and users can engage in initial offerings by holding CGPT. By holding related tokens, they can execute smart trades with ChainGPT, get daily news, seek advice on blockchain and cryptocurrency matters, and much more. The development of separate chains (Layer 1 & Layer 2) is also underway. If successfully implemented, this would provide a strong competitive edge, albeit with challenges in implementation.

Conclusion and Reflections:

Upon dissecting leading bot projects, it becomes clear that crypto bots effectively address some pain points for crypto users, such as copy trading, targeting new coins, automated airdrop interactions, and AI-generated smart contracts or NFTs. Without these bots, individual users would struggle to gain a technical edge. The surge and subsequent attention to UNIBOT have made investors and users keen on various bots, resulting in the rapid emergence of new projects within a month or two. Given genuine demand, crypto bots will carve out a new niche.

Currently, the total market cap of this niche is relatively small, around $200 million, indicating ample room for growth compared to more established sectors. Long-term growth will depend on product iteration to improve user experience, enhanced asset security and decentralization, and a growing user base.

In conclusion, projects that address user pain points are set for long-term development. The current tokenomics of bots also introduce new avenues for capital and token price empowerment. Keeping an eye on new products and iterations presents an opportunity to capture the next market surge.

Disclaimer：

1. This article is reprinted from [Medium]. All copyrights belong to the original author [Alfred, LD Capital]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.