Telegram bot coins are making it easier for ‘on-chain power degens’ to trade crypto
A Telegram bot coin that launched in May has already seen a trading volume upwards of $86 million
kovop/Shutterstock modified by Blockworks
Telegram bot coins are gaining attention in the crypto investment space after UNIBOT — a Telegram decentralized exchange (DEX) trading bot — saw its total trading volume jump from $2.8 million to upwards of $7 million over the past week.
Beyond being just a general messaging app, Telegram has been a crucial platform for many crypto traders. Over the years, it has been used to share market insights and news, and provide analysis in the space.
Developers can also create bots on Telegram that have unique functionality such as trading memecoins, farming airdrops and bridging, Ren Yu Kong of Blockworks Research explained.
“Telegram bots provide a suite of tools for the on-chain power degen,” Yu Kong said. “By abstracting away the complexities of interacting with individual protocols/interfaces and adding a suite of valuable tools such as copy-trading and token sniping, Telegram bots provide a much better user experience at the cost of custody over assets.”
In the case of UNIBOT, users who connect their wallet addresses to the bot can begin trading, buying, selling, and shorting on DEXes by entering simple commands. The bot’s developers claim that users will also be able to copy trades and receive updates on their portfolios in real time.
In fact, the bot has become so popular that since its launch in May this year, it has already seen a lifetime trading volume of upwards of $86 million, according to information provided by UNIBOT on Dune analytics.
Riding the UNIBOT wave, some other Telegram bots that have gained attention this past week include MEVfree and LootBot. The MEVfree bot alleges that it can help users extract maximum MEV on their trades while protecting them from being front-run by other traders. LootBot, on the other hand, claims it helps users farm airdrops.
MEVfree saw its market cap rise up to $6.4 million and LootBot currently has a market cap upwards of $5 million.
It is important to note that although these tools can assist in on-chain trading, security concerns around Telegram bots should not be dismissed.
Malicious actors could use bots to execute phishing attacks and scams, and connecting your wallet to these accounts may lead to sensitive information being leaked. Users should research any bot they choose to use and interact only with bots from verified developers.
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