Telegram bot coins make trading easier for on-chain power degens
A Telegram bot coin launched in May has already logged more than $86 million in trading volume.
Telegram bot coins are getting attention in the crypto investing space after the UNIBOT “Telegram decentralized exchange (DEX) trading bot” saw its total trading volume go from $2.8 million to $7 million last week.
Beyond messaging, Telegram is an important app for many crypto holders. Over the years, it has been used to share information and market news and to provide analysis in the crypto space.
Developers can also build bots on Telegram with unique functionality, such as trading memecoins, farming airdrops and bridging, explained Ren Yu Kong of Blockworks Research.
“Telegram bots provide a suite of tools for the on-chain power degen,” Yu Kong said. “By abstracting away the complexity of interacting with individual protocols/interfaces and adding a range of valuable tools, such as copy-trading and token sniping, Telegram bots provide a much better user experience at the cost of custody of your assets.
In UNIBOT's case, users who connect their wallet addresses to the bot can start trading, buying, selling and shorting on DEXs by entering simple commands. The bot's developers claim users will also be able to copy trades and get real-time updates on their portfolios.
In fact, the bot has become so popular that since its launch in May of this year it has already seen more than $86 million in trading volume, according to data provided by UNIBOT on Dune Analytics.
Some other Telegram bots that drew attention last week include MEVfree and LootBot. The MEVfree bot claims it can help users extract maximum MEV from their trades while protecting them from being front-run by other traders. LootBot, on the other hand, claims to help users take advantage of airdrops.
MEVfree saw its market cap rise to as much as $6.4 million, and LootBot currently has a market cap of more than $5 million.
It's important to note that although these tools can help with on-chain trading, the security concerns around Telegram bots shouldn't be dismissed.
Bad actors could use bots to carry out phishing attacks and scams, and connecting your wallet to these accounts could lead to sensitive information being leaked. Users should research any bot they choose to use and only interact with bots from verified developers.