Written by:@ChingChaLong 02 

tutor:@Zou_Block, @Erjiueth

Since the birth of the Telegram trading robot field, the transaction threshold has been greatly reduced, and on-chain transactions can be easily performed on mobile phones. The existence of Telegram trading robots as on-chain brokers has promoted the strong rise in the token prices of many projects. Led a wave of Telegram robot craze. This series of articles will provide an in-depth analysis of the Telegram Bot track and is divided into two articles. The first article is a summary of the track overview, and the second article is a summary of the objectives.

1. Track Overview

Since the birth of the Telegram trading bot space, we have witnessed strong token price increases for multiple projects. in particularUnibot, since July 2023, its price has begun to rise rapidly. According to data from CoinGecko, Unibots token price rose from a low of $3.13 in May to a high of $200.45 in August. This was an almost 100-fold increase, leading a wave of Telegram bots.

However, as the Unibots popularity faded, the Banana Gun emerged. After the airdrop was announced in September, its token price climbed from about $9 to as high as $18. Although its rising momentum is not as strong as Unibot, Banana Gun still maintains a certain degree of popularity for the Telegram trading robot ecosystem.

An emerging force worthy of attention is BonkBot based on the Solana chain. Its daily active users once reached about 35,700. Not only did it surpass mature projects such as Banana Gun and Maestro, but its performance in the field of decentralized exchanges was also particularly outstanding. . In the competitive field of DEX, BonkBots 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 BonkBots trading activity.

BTCBot.pro, as the Telegram Bot of the BTC ecosystem, has been online for nearly a month. Due to the particularity of the BTC ecosystem, BTCBot.pro also provides users with Telegram Bot functions that are different from those on the ETH and Solana chains, which is worth studying.

Looking at the field of Telegram trading bots, it is clear that it is not a flash in the pan phenomenon. However, the landscape in this field is constantly changing, and this article aims to sort out the current macro situation of Telegram trading bots and highlight some projects worthy of attention.

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, BonkBots 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 due to BonkBot’s efficient design on the Solana chain, which is known for its high TPS and can support more frequent transaction processing. At the same time, with the recent rise of meme coins in the Solana ecosystem, BonkBot has consolidated its dominant position in the Telegram trading robot market.

Drawing on the success of BonkBot, a similar imitating Sol Trading Bot was also launched on Solana. It has caught up with projects such as Banana Gun and Maestro Bot in terms of transaction volume, and has even surpassed both in terms of transaction frequency and daily users.

As for Unibot, available data suggests its market advantage has weakened. Even so, it is worth noting that the project has begun to be deployed on the Solana chain, which has also slightly driven its transaction volume trend. Apparently, projects using Solana as infrastructure could be the key to kickstarting the next wave of Telegram trading bots.

Despite Solana Bots stellar performance, it shouldnt be overlooked that Banana Gun was performing well before the Solana craze, trailing BonkBot in several key metrics.

2. Historical evolution

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 ability to automatically reply to messages and execute 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.

3. Market structure

The Telegram trading bot is an automated system within Telegram that assists users in executing transactions on decentralized exchanges. Users interact with these bots through the app’s messaging interface.

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 DEXs, simplifying the otherwise complex decentralized crypto buying and selling process.

These robots utilize advanced algorithms and infrastructure to conduct fast trades and are often referred to as"Uniswapsniper". 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 such as limit orders and mirror sniping, SwipeBot focuses on ease of use, and OxSniper has features such as anti-MEV protection. The following are the main uses of trading robots:

• Buy and sell tokens: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.

• Set take profit and stop loss orders:Users can use these Telegram trading bots to set stop-loss and take-profit orders, allowing transactions to be automatically executed based on preset parameters. This feature is particularly suitable for trading new tokens that have not yet been listed on CEX, but trading such tokens is risky.

• Anti-escape and Pixiu plate monitoring:Some Telegram trading robots have anti-travel and anti-MEV functions. If a token developer plans to run away, the anti-runaway feature identifies upcoming mempool transactions and quickly executes the sale to prevent runaway scams. The anti-MEV feature directs purchase transactions through private relays, ensuring that purchases are not broadcast in the memory pool, thereby preventing MEV or sandwich attacks.

  Additionally, trading bots are capable of detecting malicious transactions about to be made by developers. If such transactions result in the token being unsaleable, the token will be considered a Pixiu Plate. The robot will quicklyClose position, to avoid falling into scams.

• 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 users 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 developers 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.

4. Technical implementation path

Telegram bot functionality has been around for a few 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 Web3 Telegram bot development, providing a set of tools and services to help developers create, manage and organize bots that work with decentralizedapplicationRobots that interact with the blockchain network.

With the rise of decentralized finance and non-fungible tokens, the Web3 Telegram bot ecosystem is getting even hotter. These bots can be used for various purposes such as automated trading, asset tracking and management, social features, and more. By using Telegram bot API and Web3 technology, these bots can be integrated with blockchain networks and other Web3 applications to provide users with more flexible and powerful functions.

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

The Telegram Bot API is language-agnostic, which means it can be used with any programming language that can make HTTP requests. Commonly used languages ​​for creating Telegram robots include Python, JavaScript (Node.js) and PHP.

Source: Medium @Srikari Rallabandi  

Telegram bots are essentially programs that use the Telegram bot API to interact with the Telegram system. 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 robots identity in the system and send requests to the robot API.

In terms of infrastructure, the bot runs on servers, not the users 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 developers preference.

5. Growth drivers

5.1 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 aims 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 provides 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.

5.2 Telegram carrier

As one of the most popular social software in the world, Telegram has more than 55 million daily active users, which provides extremely fertile soil for the development of Telegram Bot. Thanks to its wide popularity and user base, Telegram is planning to transform into a super app similar to WeChat, supporting a variety of mini programs running within its platform. This move not only enhances its functional diversity but also opens up new avenues 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 aim of expanding its global influence and accelerating the process of decentralization. This series of strategic moves highlights Telegrams 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 transform Telegrams huge user base into a loyal user base of the bot, further strengthening its influence in digital transactions and cryptocurrency integration.

6. Risks

6.1 Asset security risks

When using Telegram bots to conduct cryptocurrency transactions, users need to bear the risk of asset security. These bots usually require creating a dedicated wallet or connecting to an existing wallet. In both cases, a bot could gain access to private keys, leading to a security breach.

Private key access risks:These bots have access to private keys, raising security concerns. A private key is similar to a master key to a user’s digital wealth, and its exposure can lead to serious consequences, including theft and unauthorized transactions. Bot access to these keys significantly increases the risk of security breaches.

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 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 transactions. 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.

6.2 Risks of Lack of Code Audit

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 Certiks data, these two projects have not undergone Certiks code audit, so users need to bear the risks related to smart contracts.

Since the project failed Certiks code audit and KYC review, it received lower scores in terms of code security and fundamental health.

Banana Gun also has a past 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 code audits and did not conduct KYC reviews. This situation may affect the credibility and security of the project, as less well-known audit firms may not be able to provide the same level of audit quality as more renowned agencies. At the same time, the lack of KYC audits also increases the risk of transactions with anonymous or opaque entities.

6.3 Competition is fierce

In the fiercely competitive Telegram Bot ecosystem, market entry barriers are relatively low and are easy to be imitated and copied, leading to serious homogeneity among projects. In such a competitive landscape, individual Bots may face the challenge of user loss, so building strong competition barriers becomes a key element. This means that projects need to have unique advantages to prevent market intrusion by competitors.

Taking Bonkbot as an example, its hot status in the Solana meme currency field is mainly due to its position as a market pioneer. However, user loyalty in this area is generally low, and they are more likely to choose services based on product performance and potential benefits 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 fail to stay ahead of the curve.

In summary, although the Telegram Bot field as a whole shows promising growth potential, it does not mean that every project can stand out from the competition. Therefore, investors need to be aware of the potential investment risks of each project when getting involved in this field, and also be aware of the unpredictability of this market.

7. Summary and outlook

7.1 Telegram Bot competition in Solana ecosystem intensifies

Market saturation and formation of leaders: 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 better user experience to attract and retain users.

7.2 The cryptocurrency market enters 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 and 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 ordinary Web 2 users will increase as retail investors enter the market.

7.3 Ordinals Inscription Market and Bitcoin’s Telegram Bot Development

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

Initial Market and Opportunities: Since the Bitcoin Telegram Bot market is still in its early stages, we remain optimistic about future development. 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.

[Statement] This report is an original work completed by @ChingChaLong 02, a student of @GryphsisAcademy, under the guidance of instructors @Zou_Block and @Erjiueth. The authors are solely responsible for all content, which does not necessarily reflect the views of Gryphsis Academy, nor the views of the organization that commissioned the report. Editorial content and decisions are not influenced by readers. Please be aware that the author may own the cryptocurrencies mentioned in this report. This document is for informational purposes only and should not be relied upon for investment decisions. It is strongly recommended that you conduct your own research and consult with an unbiased financial, tax or legal advisor before making any investment decisions. Remember, the past performance of any asset does not guarantee future returns.