Original Title: "Analysis of Telegram Bot Race (Part 1): How Can On-Chain Brokers Promote Web3 Mass Adoption?"

Original Author: @ChingChaLong02

Guidance Teachers: @Zou_Block, @Erjiueth

Since the emergence of Telegram trading bots, the threshold for trading has been greatly reduced, and on-chain transactions can be easily conducted on mobile devices. As a brokerage-like presence on the chain, Telegram trading bots have driven the strong rise in the token prices of multiple projects, leading a wave of Telegram bot fever.

This series of articles will provide an in-depth analysis of the Telegram Bot track, divided into two parts. The first part serves as an overview of the track, while the second part focuses on target identification.

1. Overview of the Track

Since the emergence of Telegram trading bots, we have witnessed the strong rise in token prices of multiple projects. Especially Unibot, its price has been rapidly climbing since July 2023. According to CoinGecko's data, the token price of Unibot has risen from the lowest point of $3.13 in May to the highest point of $200.45 in August, which is nearly a 100-fold increase, leading a wave of Telegram bot frenzy.

However, as the popularity of Unibot gradually declined, Banana Gun emerged. After announcing its airdrop in September, its token price climbed from about $9 to a high of $18. Although its upward momentum was not as strong as Unibot, Banana Gun still maintained a certain level of popularity for the Telegram trading bot ecosystem.

The emerging force worth paying attention to is BonkBot based on the Solana chain, which had a daily active user count of about 35,700, surpassing not only mature projects such as Banana Gun and Maestro, but also performing particularly well compared to the decentralized exchange field.

In the competitive field of DEX, BonkBot's average daily user volume in the past 7 days is second only to Sushiswap, surpassing veteran projects such as Maverick Protocol and Trader Joe. This trend is undoubtedly due to the recent popularity of the Solana ecosystem, coupled with the enthusiastic trading of meme coins on Solana, which further boosts the trading activity of BonkBot.

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

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

According to data analysis, since the launch of BonkBot, it has been leading the market in terms of trading frequency and user numbers compared to other trading bots. Especially in terms of trading frequency, BonkBot's performance is significantly higher than Banana Gun and Maestro Bot, with a trading frequency of approximately 10 times higher than them.

This outstanding achievement is due to the efficient design of BonkBot on the Solana blockchain, 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 solidified its dominant position in the Telegram trading bot market.

And inspired by the success of BonkBot, a similar copycat Sol Trading Bot has also been launched on Solana. In terms of trading volume, it has already caught up with projects such as Banana Gun and Maestro Bot, and in terms of trading frequency and daily users, it has even surpassed both of them.

As for Unibot, existing data shows that its market advantage has weakened. However, it is worth noting that the project has started to deploy on the Solana chain, which has also slightly driven its trading volume trend. Obviously, projects using Solana as infrastructure may be the key to starting the next wave of Telegram trading bot frenzy.

Despite the outstanding performance of Solana Bot, we should not overlook the good performance of Banana Gun before the Solana craze, which closely followed BonkBot in multiple key indicators.

2. Historical Development

With the booming development of the cryptocurrency industry, Telegram Bot has gained increasing attention as an intelligent trading tool in the cryptocurrency community. As early as 2017, Telegram Bot had the ability to automatically reply to messages and execute user commands.

With the rise of the cryptocurrency industry, Telegram has become the most commonly used instant messaging tool for cryptocurrency enthusiasts. Against this backdrop, trading bots based on Telegram have gradually emerged, which can realize automated operations such as token exchange, copy trading, data analysis, automated airdrop trading, and asset cross-chain.

3. Market Structure

Telegram trading bots are automated systems within Telegram that assist users in executing trades on decentralized exchanges. Users interact with these bots through the messaging interface of the application.

Different Telegram trading bots offer unique features, but most have common trading functions, including stop loss and take profit orders, copy trading, and multi-wallet support.

These robots have replaced the user interface (UI) and user experience (UX) of Web3 wallets and DEX, simplifying the originally complex process of decentralized cryptocurrency trading.

These robots use advanced algorithms and infrastructure for fast trading, often referred to as "Uniswap snipers". They meet users' needs for trading efficiency and convenience. Although all these robots have the common feature of fast trading speed, they differ in their specific functions. For example, UniBot provides limit orders and mirror sniping, SwipeBot focuses on ease of use, and OxSniper has anti-MEV protection. The following are the main uses of trading robots:

· Buy and sell tokens: Trading robots are integrated with the Telegram platform, allowing users to easily obtain tokens by copying and pasting the contract address into the message box. Some robots provide real-time updates on profits and losses during trading, and speed up token sales by enabling pre-approved transactions.

· Set stop loss and take profit orders: Users can use these Telegram trading bots to set stop loss and take profit orders, allowing for automatic execution of trades based on preset parameters. This feature is particularly useful for trading new tokens that have not yet been listed on CEX, but carry higher risks.

· Anti-runaway and Pixiu disk monitoring: Some Telegram trading robots have anti-runaway and anti-MEV functions. If the token developer plans to run away, the anti-runaway function can identify the upcoming memory pool transaction and quickly execute the sale to prevent runaway scams. The anti-MEV function guides the purchase transaction through a private relay to ensure that the purchase is not broadcasted in the memory pool, thereby preventing MEV or sandwich attacks.

In addition, trading robots can detect malicious transactions that developers are about to make. If such transactions cause tokens to be unsold, the token will be considered a "Pi Xiu plate". The robot will quickly close the position to avoid falling into the scam.

· Copy Trading: Users can automatically copy trades from a specific wallet address through a designated Telegram bot. These bots act as a bridge between the user's account and the selected trader, executing trades based on signals from the copy trader. However, it is important to note that copy trading carries liquidity risks, as low market liquidity may make it difficult to execute trades and increase trading costs.

Source: Medium @Srikari Rallabandi

To mitigate these risks, it is recommended that users exercise caution when using Telegram bots for cryptocurrency trading. This includes thoroughly researching the security features of the bots, avoiding storing large amounts of assets in wallets accessed by these bots, and regularly monitoring trading activity for any signs of unauthorized behavior.

Although Telegram bots provide convenience and efficiency in trading, they also bring substantial risks to asset security. Users must remain vigilant and take proactive measures to protect their digital assets in this constantly evolving field.

6.2 Lack of Code Audit Risk

For Telegram bots, the lack of comprehensive and regular security code audits may increase the risk of vulnerability exploitation. This lack of auditing leads to a lack of transparency and oversight, putting users' assets at risk. Taking Unibot and Banana Gun as examples, according to Certik's data, neither of these projects has undergone Certik's code audit, so users need to bear the risks associated with smart contracts.

Due to the project not passing Certik's code audit and KYC review, the ratings for "code security" and "fundamental health" are relatively low.

And Banana Gun also has a precedent. Within the first three hours of the token's launch, its price experienced violent fluctuations, dropping from a peak of $8.7 to just $0.02, almost zero.

Regarding the abnormal market performance, the Banana Gun team explained through an official announcement that there is a critical error in the token contract that the team has failed to fix. They added that despite two audits of the contract, the error was still not discovered. This incident also confirms the risks of not conducting code reviews.

Unibot chose a third-party with low recognition for code auditing and did not undergo KYC verification. This situation may affect the credibility and security of the project, as less well-known auditing agencies may not be able to provide the same level of audit quality as more famous ones. At the same time, the lack of KYC verification also increases the risk of transactions with anonymous or opaque entities.

6.3 Intense Competition

In the fiercely competitive Telegram Bot ecosystem, the market entry threshold is relatively low, making it easy to be imitated and replicated, resulting in serious homogenization among projects. In such a competitive landscape, individual bots may face the challenge of losing users, so building strong competitive barriers becomes a key factor. This means that projects need to have unique advantages to prevent competitors from invading the market.

Using Bonkbot as an example, its hot status in the Solana meme coin field is mainly due to its position as a market pioneer. However, user loyalty in this field is generally low, and they are more inclined to choose services based on product performance and potential returns rather than brand loyalty. This means that once better trading conditions or more attractive opportunities appear, users will quickly switch to other platforms. This is the key reason why platforms like Unibot or Maestro Bot have failed to maintain their leading positions.

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

7. Summary and Outlook

7.1 Solana ecosystem's Telegram Bot competition intensifies

Personalization and Innovation: Projects must differentiate themselves through personalized services, technological innovation, or better user experience to attract and retain users.

7.2 Cryptocurrency Market Enters Bull Market

Market positioning and accessibility: Given that Telegram Bots aim to simplify the process of cryptocurrency trading, their appeal to ordinary Web 2 users will increase as retail investors enter the market.

7.3 Ordinals Development of Inscription Market and Bitcoin Telegram Bot

Positive trend in the Bitcoin market: Ordinals Inscription market benefits from the positive trend and news of Bitcoin, and is expected to further grow.

Initial Market and Opportunities: Due to the early stage of the Bitcoin Telegram Bot market, there is optimism for future development. This provides a huge opportunity, especially for projects that can quickly adapt to market demand and innovate their services.

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