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Interpreting the Binance Research Institute's Telegram Bots report: Outlook and Risks of the Industry.

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Various bots tokens on Telegram have recently attracted attention with their astonishing price surges. Although there has been some pullback, the narrative of being in the early stages of volatility is still worth paying attention to.

Original Title: "Interpreting Binance Research Telegram Bots Report: Another Trading Experience on Mobile"

Original Author: Jie Xuan Chua, Binance Research

Translated by: Deep Tide TechFlow

Various bots tokens on Telegram have recently caught people's attention with their astonishing price surges. Although the prices have since fallen, the narrative of being in the early stages of volatility is still worth paying attention to.

What is the trading mode of robot in the encryption industry? How will the entire industry develop in the future, and what are the possible risks that may exist?

Shenzhen Stock Exchange has sorted and interpreted the report, and the following are the key points.

Key Points:

Telegram bots provide users with a more user-friendly way to participate in cryptocurrency activities through mobile devices by offering features such as trading, airdrops, and brushing.

The cumulative trading volume of Telegram bots has exceeded $190 million, with a daily trading volume of up to $10 million.

Telegram bots profit by collecting transaction fees and token trading "taxes". Total revenue has exceeded $28.7 million.

At present, it is difficult to determine the real demand, and the current popularity is largely driven by the rise in token prices. However, this field will continue to develop in the short term.

Telegram Robot Trading General Process

Users can input commands in the Telegram bot's channel, and the bot will generate the main menu.

Users can set up a new wallet or connect to an existing wallet in the menu, and recharge the wallet with the provided address.

And then execute different types of transactions, such as buying and selling tokens, airdrop brushing, copy trading, etc.

Evaluation:

Compared to existing DeFI front-ends, the Telegram bot provides a more user-friendly and convenient experience (especially for novice users).

Telegram has 800 million monthly active users, and those who are familiar with Telegram but have not joined the community are actually a good choice.

Telegram Bot Common Functions and Comparison

1. Trading: Tokens can be bought and sold directly through Telegram.

2. Airdrop Sniping: Automatically buying tokens when they are listed for the first time.

3. Copy trading: You can simulate the trades of other traders.

4. Airdrop farming: It can automatically execute a series of operations to increase the chance of obtaining airdrops.

5. Other Functions: such as analysis or wallet tracking, etc.

The comparison of typical robot functions is basically about making trade-offs among the above functions.

Evaluation:

Do you have a bunch of apps, where you used to go to A for e-commerce, B for financial management, and C for offline life, but now everything is included in one WeChat app?

Massive traffic entry plus feature integration. Although the robot function is still in the early stage, doing "one-stop" articles in the traffic pool is a method that is clearly different from most DeFi applications.

Race track panoramic analysis

Total Potential: Telegram reportedly has over 800 million monthly active users, and now can perform encrypted activities in a different way through mobile devices.

Market Value and Project Status:

At the time of writing this article, the market value of robot-related tokens has exceeded 150 million US dollars, and many tokens have grown several times in the short term.

The key contributor is the UNIBOT token, which occupies more than 77% of the market share. With Unibot as the proxy, interest on Google search continues to increase.

Evaluation:

According to the typical process of attention transfer for ordinary users, the price often rises first before they search on search engines. Therefore, it is possible that more people will search as the price increases, but in reality, the proportion of users who actually use robot trading is not very high.

More accurate analysis of the attrition rate was not provided in Binance's report, but we can understand it as a normal process of new narrative development, starting from a few people paying attention, to price increase, to more people searching, and then price starting to decline.

Maestro stays ahead with daily active users of around 2000-3000. Unibot is catching up, with the gap significantly narrowing in recent weeks; daily active users increased from around 400 to a peak of 1700 in the two weeks of July.

The daily trading volume on the robot has reached a record high, exceeding $10 million. The total trading volume over the entire lifecycle has also exceeded $190 million. Note that the actual amount may be higher as not all data is immediately available.

Token Impact:

Token transactions have the ability to affect community participation, especially for new narratives.

The rising token prices and trading volumes attract attention and discussion, and vice versa.

Although still at a high level, we have noticed that the trading volume of these robot native tokens has slowed down in the past few days, coinciding with the overall decline in robot users and robot numbers.

Evaluation: Speculation is the primary productive force. However, whether this narrative has ended and whether there will be another round of speculation is not a definite answer.

Machine Learning Project Revenue Model

The revenue of a robot project is determined by the transaction amount and tax fees together:

1. Users initiate trading activities through robots.

2. Earn transaction fees through agreements;

3. Users buy/sell robot-related tokens;

4. Taxation of behavior of Party 3 under the agreement.

For example, Unibot collected a total of 4.3K ETH (approximately $8 million), of which about 86% came from purchase or sale taxes, rather than transaction revenue.

Maestro is currently leading in terms of cumulative revenue, with Unibot in second place, but the difference in revenue between the two is more than double.

In addition, Maestro's relatively high daily active user count of approximately 2000-3000 people allows for stable transaction revenue.

The transaction revenue comes from Maestro, which charges a 1% transaction fee for each successful buy or sell order through the application.

Race Prospects and Risks

Ongoing and potential development directions:

扩展到其他媒介:Many robots have expanded from Telegram to other media, such as Discord. This allows them to reach more users and provide another venue for executing transactions.

Increase product portfolio: Although some robots may choose to focus on a single field (such as snatching new products), we speculate that more robots will try to develop new features to cover more fields and become a one-stop shop. Users only need to visit one robot to perform various transactions.

Cross-chain expansion: We have observed robots expanding across chains, not just on the Ethereum blockchain. This allows them to provide convenience for users to transact between different blockchains.

打价格战: The cost of most Telegram bots is currently not cheap. When the industry matures and there is almost no product differentiation among many old players, lower costs can be used to attract users.

Possible Risks

Asset Security: Robots have different settings, but usually allow users to create dedicated wallets or connect to existing wallets. In both cases, the robot will access the private key, which may pose a risk.

Smart Contract Risks: Considering the operation mode of robots, interaction with smart contracts is inevitable. Although the audit is not comprehensive enough, strict audit projects will enable developers to identify and solve key issues.

User suggestion:

1. Small-scale transactions;

2. Keep wallet funds to a minimum;

3. Create a new wallet instead of the main wallet when interacting with robots

Conclusion

It should be noted that a significant portion of the revenue earned by some robots may come from sales or purchase taxes on trades, rather than from the robots' trading income.

At this stage, it is too early to determine whether the Telegram bot can continue to attract user interest.